Back to Pattern Library

Impulsive vs Corrective Price Action

The market has two modes: push and pause. Impulsive moves create structure with momentum. Corrective moves are the messy pauses between them. If you can tell which phase you're in, you know whether to trade or wait.

What They Look Like

Impulsive (Expansion)

  • • Large candle bodies
  • • Small wicks (minimal rejection)
  • • Consistent direction
  • • High volume
  • • Creates new structural highs/lows

Corrective (Contraction)

  • • Small candle bodies
  • • Long wicks both directions
  • • Mixed colors (alternating)
  • • Low volume
  • • Stays within existing structure

The One Rule

Trade impulsive phases. Avoid corrective phases. This single filter eliminates most losses caused by choppy, indecisive markets. The high-probability trades are always in the impulsive legs.

Detailed Comparison

FactorImpulsiveCorrective
Candle bodiesLarge, closing near extremesSmall, lots of rejection wicks
DirectionConsistent (mostly one color)Alternating (mixed colors)
VolumeHigh, increasingLow, decreasing
StructureCreates new highs/lowsStays within range
MomentumStrongWeak / choppy
Trading actionTrade with itWait or reduce size

Transition Signals

Impulse Ending

Signs the move is exhausting:

  • • Candle bodies getting smaller
  • • Wicks getting longer (especially against trend)
  • • Swing point forming (swing high/low)
  • • Volume decreasing

New Impulse Starting

Signs a new move is beginning:

  • • Strong, large-bodied candle in trend direction
  • • Break of internal correction structure
  • • Volume increasing
  • • Candle closing near extreme (minimal wick)

Frequently Asked Questions

Can I trade corrective phases at all?

Advanced traders sometimes scalp corrections, but it's significantly harder and less profitable. For most traders, the best approach is to use corrective phases for planning your next entry in the impulsive direction, not for taking trades.

How many candles define an impulsive phase?

There's no fixed number. It's about character, not count. One large-bodied candle can be impulsive. The key markers are: body size relative to recent candles, wick size, volume, and whether new structure is being created.

What if I'm already in a trade when the corrective phase starts?

If your stop loss is placed correctly (beyond the structural range invalidation point), hold the position. The corrective phase is the pullback. It should resolve with a new impulse in your direction, or hit your stop if the trend reverses. Don't exit just because the market pauses.

Does this work on all timeframes?

Yes. Impulsive and corrective phases are fractal—they appear on every timeframe from 1-minute to monthly. However, identifying them is cleaner on higher timeframes (1H+) where noise is reduced.

Related Resources

Last updated: February 2026 | Based on structural price action principles

Deep Dive Articles