The logic of this strategy is based on impulsive move followed by corrective move. I am using USDJPY for this strategy and often I noticed that after an initial impulsive move price retrace 50% to 60%, which I consider as corrective move in order to get un-filled orders plus new orders are placed after traders see an impulsive move in one direction. Once those orders are triggered, price once again move in the direction of initial impulsive move. The parameters of impulsive and corrective move are adjusted constantly based on pair and market volatility. Here are current parameters: Currency: USDJPY, Timeframe: 1 Minute; Impulsive Move: 20 Pips, Corrective Move: 10 Pips, Take Profit: 50 Pips, Stop Loss: 50. Stop loss is tightened to -25 pips once trade is 25 pips in profit in order to get a better risk to reward ratio in the long run. Chart examples here http://www.dukascopy.com/fxcomm/blog/?action=post-show&post_id=11267