Understanding Impulse Price Swings and Market Protraction in Trading

okay folks we'll be looking at impulse price swings and market protraction

very similar ideas but uniquely different i'm going to first talk about impulse

price swings a impulse price swing would be something like this

okay so we have an impulse price swing down then we have another impulse price swing

higher and we have another impulse price swing lower

and the impulse swing higher followed by an impulse swing lower and a higher

swing of impulse movement higher then we have another impulse swing lower

followed by another impulse swing higher followed by an impulse swing lower another impulse swing higher

and ultimately another impulse swing lower so we have price swings moving from high

down to a low to another high down to another low to a high to a low

to another high making another low up to a high down to a low up to a high

down to a low when you look at price action you need to be thinking in terms of impulse price

swings because inside the impulse price swings it's going to give you a lot of detail

now there are smaller more specific impulse price

swings that have a lot more influence over the marketplace in the form of a

manipulative move or market making

manipulation so let's take all this off and focus

primarily on protraction now if we look at the market with the similar

ideas we just illustrated with every impulsive price swing and then we add to it time of day

by holding down control and tapping y on your keyboard you'll add the vertical delineations for zero gmt

so zero gmt vertical line to another

day divided basically when we see this okay

then we can look at time sensitive impulse price swings

which is market protraction market protraction is time sensitive

it's an impulse price swing that is highly sensitive to a time of day there are three primary

protractionary market moves every 24 hours the first one is

raid at zero gmt you'll see one little movement away or

lower in other words up or down right at that at delineation in time

you see one here it trades down away from it and moves higher we see this one here trades down then

moves higher you see this one here trades higher this one here it trades higher

and that's all we're going to look out for for that asian session i don't believe asia is that

influential initially the other market protractionary

state is in is in london now we can take the control y

feature off and just focus on the vertical lines here delineating midnight new york

initially right after midnight new york on this day we have a market move higher this market move here is a

protractionary market phase where the market trades up initially at a specific time of day so there's an

impulse price swing here but its design is to fake out the individuals that chase that initial move after midnight

the second impulsive price swing starts in new york we delineate seven o'clock in the morning

and we anticipate if the market has moved lower in london we're going to be looking for a retracement higher that

impulsive price move higher is market protraction it's designed and intended for

manipulation only it's to get traders to think that the the market's making a low in this case

it rallies up and then trades down ultimately here again

here's new york time in new york session opening

market goes into another projectionary market state right after

the seven o'clock hour going into new york open small little retracement

and market trades lower again seven o'clock in the morning

the market goes into a small impulse price swing higher

this is market protraction its intent is for for manipulation its counter

direction in other words if this move occurs at this time of day if it goes higher we think the opposite

direction if it goes lower we think the opposite direction

so if it initially moves higher and the market's been going lower we see that as manipulation or market

protraction market's going to seek to draw in participants on the wrong side of the marketplace or

reach for liquidity it has to happen after seven o'clock in the morning has to happen after seven o'clock in the

morning and it has to happen after seven o'clock in the morning the other one is

in the london session obviously and it's after four

gmt on the forex ltd demo account if we see a movement higher and more bearish we see that as market

protraction or a judas swing it's a false rally to sell into same thing occurs in after new york's

seven o'clock in the morning time we anticipate a round up off the london high so when we see that

we expect the market to go into a protractionary state where it rallies up to reach for liquidity

and then expand down this day here market drops initially rate from the

midnight candle drops lower then rallies up

so this is market protraction it seeks liquidity below the market over here clearing out

lows and then rallies rate it new york

markets one more time little rally in here then sells off

the next day london we see initial rally after midnight

candle and then it trades lower right after seven o'clock in the morning

new york we get one more protractionary state in the marketplace where the market rallies again

small minor little impulse price swing but its design is to manipulate the sentiment and or the thoughts of

traders wanting to be participants this would look like a low in this run up here would entice buyers

in a new york session and then they reverse it having these things in mind

we can look at the market in the context of what we shared so far

for this month we see a market move

down from a market impulse price swing so we can measure that swing down

from the high we can use this one it's high down to this low it retraces

back up above equilibrium so we go into a premium market at the 62 retracement level we can sell there with a move

expecting to see a run below this low market goes into protractionary phase after an impulse price swing

we can be a seller reaching for liquidity below the lows and looking over here in previous days we can find

an old load back here as well and market trades down into that level market makes another impulsive price

swing here in this context the market rallies up

with another move higher in the next london session it's in judah's swing lower or market

protractionary phase faking traders out thinking it's going to drop initially and it rallies up and

it rallies up into the new york session right into a premium market so we're blending

impulse price swings and then time of day retrade rate back into equilibrium

for market protraction right in here and then it expands going lower taking out stops below the lows over

here and aiming for the stops below these equal lows which they accumulate here

another impulse price swing here down to the low right

here impulse swing up rate at the new york midnight candle

due to swing higher fake move higher it trades down

going into new york we see another protractionary market phase where it trades up

right into an area where it sold off before lower expansion

reaching down into the 3255 level why would it reach down there and why is it quickly moving so fast to go down to

that level is because you can see the old low over here

the difference in in determining impulse price swings and in market

protraction is the fact that there is a time element applied to the small

impulse swing after midnight new york time after 7 a.m

new york time and 8 p.m new york time

there's usually a protractionary market phase that enters the marketplace and it's a small little impulse price swing

that's counter the major direction that you're going to see after that specific time of day

so for session trading and for session drills you can use this concept to help

give you context in your practicing and also build your anticipatory price skills