Identifying Impulses and corrections

An impulse describes a strong move in an asset's price coinciding with the main direction of the underlying trend. Impulse waves are trend confirmation waves. The corrective wave is the period move where price is struggling against the trend. e.g. A dead cat bounce (trend continuation pattern) is a short-term recovery in a declining trend that does not indicate a reversal of the downward trend. A flag is a short sloping rectangle bounded by two parallel trend lines. They can be both bullish and bearish.