2. How price moves – impulse and pullback
Watch any chart for a while and you will see a rhythm: push, pause, push, pause. The push is called an impulse. The pause is called a pullback (or correction).
Learning to tell the two apart is the first real skill of price action.
2.1 Impulse moves
- Big candles in one direction.
- Little overlap between candles – each candle opens near the previous close and moves further.
- Small wicks against the direction.
- Often higher volume.
An impulse shows one side is in strong control.
2.2 Pullbacks
- Smaller candles, often mixed colours.
- Lots of overlap – candles sit on top of each other.
- Slower speed – it takes more candles to cover less distance.
- Often lower volume.
A pullback shows the strong side is resting, and the other side is not strong enough to take over.
When you run up the stairs to catch a train, you take big steps fast (impulse). At the landing, you slow down and catch your breath for a moment (pullback). Then you run up the next flight.
If at the landing you suddenly start running down the stairs fast, something has changed. Same with price: if the pullback becomes faster and bigger than the impulse, the strong side may be losing control.
2.3 The key comparison
Always compare the current pullback with the previous impulse:
| What you see | What it suggests |
|---|---|
| Pullback is slow, small and overlapping | Trend is healthy. The strong side will likely return. |
| Pullback is as fast and big as the impulse | Balance is shifting. Be careful. |
| Pullback goes beyond the start of the impulse | Structure is damaged. The trend may be over. |
Candles ka size aur speed dekho. Tez aur bade candles = conviction. Chhote aur ek-dusre pe chadhe hue candles = hesitation. Your eyes will learn this faster than any indicator.
Slow, small, overlapping pullback candles show sellers are weak. The impulse was up.
- Price moves in impulses (pushes) and pullbacks (pauses).
- Impulse: big candles, little overlap, speed, often more volume.
- Pullback: small candles, overlap, slow, often less volume.
- Compare each pullback with the previous impulse to judge who is in control.
- Ek line mein: Tez aur bade candles matlab dum hai, chhote aur ek-dusre pe chadhe candles matlab sirf aaram chal raha hai.