Okay folks, we're going to 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. An 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. Then we have another impulse price swing lower. Another 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 impulse of 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 divider 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 rate at zero GMT. You'll see one little movement away.
or lower, in other words up or down rate at that delineation in time. You see one here, it trades down away from it, then moves higher. We see this one here, it trades down then moves higher. You see this one here, it trades higher. This one here, it trades higher.
And that's all we're going to look at for that age and session. I don't believe age is that influential initially. The other market protractionary state is in London.
Now we can take the CTRL-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 it's designed is to fake out the individuals that chase that initial move after midnight. The second impulsive price swing starts in New York. We delineate 7 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 market's making a low in this case. It rallies up and then trades down ultimately. Here again, here's New York time, New York session opening. market goes into another protractionary market state right after the seven o'clock hour going into new york open small little retracement then 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 it's 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 7 o'clock in the morning. It has to happen after 7 o'clock in the morning, and it has to happen after 7 o'clock in the morning. The other one is in the London session, obviously, and it's after 4GMT on the Forex LTD demo account. If we see a movement higher and we're bearish, we see that as market protraction or a Judah swing.
It's a false rally to sell into. Same thing occurs after New York's. 7 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 right 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.
Right at 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 7 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, and this run up here would entice buyers in the 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. This 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 the protractionary phase after an impulse price swing. We can be a seller, reaching for liquidity below the lows. Looking over here in previous days, we can find an old low 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 a Judas swing lower.
or market protractionary phase. Faking traders out thinking is 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 right at the New York midnight candle. Judas 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? It's because you can see the old low over here. The difference 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.