DivineFx Trading

LESSON 1: PULLBACK, IMPULSE & CORRECTION

 Trends
 A trend represents a consistent change in prices (i.e., a
change in investor expectations).
 There are three types of trends:
1. Uptrend - Defined by successively higher low-prices.
2. Downtrend - Defined by successively lower high-prices.
3. Sideways trends (ranging) - Defined by successively equal high
& Low prices.
 Impulse & Correction
 Price generally move in two ways Impulse and Correction.
 When Market momentum is very strong to the upside or
downside, those moves of strong and healthy price action
are called Impulsive Moves, where as the weak unhealthy
price action are called Corrective Moves.
 The Impulsive move is caused by big Institutions and Banks
that is why Buying/Selling Momentum is strong, and
Correction move is where retail traders are trying to
Buy/Sell and market move in a particular range.
 PULLBACK
 Is when Price taken out Previous Candle High/Low.
 The candle colors not matter may either be Bullish or
Bearish, but both scenarios are valid.
 One more thing is that, sometimes candle can Close or
Sweep Previous Candle High/Low, Both scenarios are valid.
Assignment;

Go to your trading platform(Tradingview), identify

20 examples of valid pullbacks.