We added a horizontal line at the impulse wave to the upside. We then want to see a price confirmation of that move. How can we do that? Well, we need to see the BAR break through that line, which is labeled as the IMPULSE WAVE DOWN. We then see the next bar rebound, but not break through our line, at this point we would be patient and keep watching. We then see the next bar return through and close green. Is this a price confirmation? NO, this is a common mistake traders can make. It would be called a "bull trap" Because we see the next bar open and close RED. Technically, no matter how far the wick goes down, we wait for the close price with this strategy. So, we got the green candle up and through support, and then the red candle down, meaning support at the line we had where the last impulse wave spiked has broken down. This is our confirmation. Which means the next move is likely to go down. Which in this case, we can see that scenario play out.
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