Free lessons › Key Levels & Market Structure › Reading Candles in Context
Impulse candles
When a single bar tells you who is in control.
7 min · Beginner
What you'll learn
- Identify an impulse candle by its range, body, close and volume
- Use the impulse candle's midpoint and base to plan a pullback entry
- Tell a healthy impulse apart from a climax candle
Key takeaways
- An impulse candle has a big range, a full body, a close near its extreme and heavy volume.
- Impulses that launch from a level or break through one show who is in control.
- Do not chase the bar; plan the pullback toward the midpoint or the broken level.
- A huge candle after a long run into a higher-timeframe level may be a climax, not strength.
Glossary
- Impulse candle — A large, full-bodied candle that closes near its extreme on heavy volume, showing one side took control.
- Candle midpoint — The halfway price between a candle's high and low, often used as a line that healthy pullbacks hold.
- Climax candle — An oversized candle late in a move, often into a major level, that marks exhaustion rather than new strength.
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