Lecture Notes on Impulse Price Swings and Market Protraction

Overview

• Impulse Price Swings:

  • Repeated movements between highs and lows.
  • Important to understand price action and market manipulation.
  • Smaller impulse swings influence the market significantly.

• Market Protraction:

  • Time-sensitive impulse price swings.
  • Occurs at specific times daily.
  • Often used for market manipulation.

Impulse Price Swings

• Impulse swings follow a pattern: high to low, low to high.
• Details of market behavior are embedded within these swings.
• Smaller, specific impulse swings can manipulate the market.

Market Protraction

• Time-sensitive swings, specific to times of day.
• Three primary protractionary moves every 24 hours:
  1. Zero GMT:
     • Movement from a starting point.
     • Market trades away from zero GMT.
  2. London Session:
     • Occurs after Midnight New York time.
     • Fake moves designed to mislead traders.
  3. New York Session:
     • After 7 AM New York time.
     • Retracements that are misleading.

Key Concepts

• Protractionary Moves:

  • Designed to mislead market participants.
  • Usually counter the main direction after specific times.
  • Used to reach for liquidity, targeting traders on the wrong side.

• Retracements:

  • Often occur after movements in the opposite direction.
  • Can indicate manipulative moves.

Trading Implications

• Recognize fake moves during specific time frames.
• Use impulse swings and market protraction to anticipate market direction.
• Look for protractionary phases after known time markers (e.g., after 7 AM NY time).

Example Scenarios

• Market Movement from London Open:
  • Initial spike up/down after midnight.
  • Observing protractionary phase post 4 GMT in Forex LTD demo.
• New York Session:
  • Moves higher after 7 AM, likely protractionary if followed by a market drop.

Conclusion

• Understanding impulse swings and protraction helps in anticipating market moves.
• Time of day is crucial for identifying manipulative phases.
• These concepts assist in enhancing trading strategies and recognizing market patterns.