An impulse is a strong leg in the trend direction with large bodies and little overlap; a correction is the slower, overlapping move against it.
How traders use it: Trend traders try to enter near the end of a correction and expect the next impulse, with the stop beyond the correction's extreme.
Common mistake: Mistaking a deep, fast "correction" for a pause when it is actually a new impulse the other way.
Related: Displacement · Pullback · Momentum
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Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.