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Market Intelligence › Basic Terminologies

IMPULSE VS CORRECTION

Impulse is a sharp move in the direction of the trend; Correction slow move against him.

Published by The Retail Trader · JUL 31, 2026 · Price Action

Impulse vs Correction — Impulse is a sharp move in the direction of the trend; Correction slow move against him.

WHERE THIS FITS IN

This term comes under Price Action, in the "MOVE terms" section. Ab the words that come up in every trading conversation — getting them wrong is the most costly:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Trend
• Sideways / Range
• Pullback
• Retracement
• Reversal
• Breakout
• Breakdown
• Fakeout / False Breakout
• Retest
• Gap Up / Gap Down
• Gap Fill
• Consolidation

To read the entire group and all its examples in one place, see the journal "PRICE ACTION: THE LANGUAGE OF THE CANDLE" - this term is taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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