Lecture on Impulse Price Swings and Market Protraction

Introduction

• Key Topics: Impulse price swings and market protraction.
• Objective: Understanding the differences and similarities between these market behaviors.

Impulse Price Swings

• Definition: Changes in price movement, characterized by a series of highs and lows.
• Pattern Example: High → Low → High → Low, etc.
• Importance: Understanding these swings helps dissect market details and manipulations.
• Market Manipulation: Some swings are smaller, having significant market influence as manipulative moves.

Market Protraction

• Concept: Time-sensitive impulse price swings.
• Time of Day: Critical factor influencing protraction.
• Primary Protraction Phases:
  • Zero GMT: Initial movement up or down, often followed by an opposing move.
  • London Session: After midnight New York time, typically shows upward moves.
  • New York Session: After 7 AM, often characterized by retracement followed by expected opposite movement.
• Purpose: Designed for manipulation, to lure traders in the wrong direction.

Application of Concepts

• Combining Swings and Time: Using impulse price swings alongside time of day for trading strategies.
• Protractionary States:
  • London: Post-midnight, market may fake downward move then rally.
  • New York: Around 7 AM, retracement can signal manipulation.
• Anticipating Movements: Understanding these patterns helps anticipate market behaviors and avoid traps.

Practical Example

• Market Analysis:
  • Measure an impulse price swing.
  • Use retracement levels (e.g., 62% retracement) for potential market entries.
  • Identify protraction phases to sell or buy based on liquidity targets.

Conclusion

• Blending Concepts: Use impulse price swings combined with time of day indicators to anticipate market directions.
• Session Trading: Implementing these concepts in trading sessions for better anticipation and practice in market analysis.