The trend can be divided into two distinct parts:

 

The trend can be divided into two distinct parts: The impulse and the correction. The impulses are the smaller moves in the direction of the larger trend and are what we should be trading. The corrections are the pauses in the trend and may move sideways or opposite of the trend. These corrections allow traders the opportunity to re-enter into the dominant trend direction before the new impulse. Impulses demonstrate several characteristics: They have fast moving prices, they tend to have larger candles and they may have gaps in the trend direction. Overall, they are violent moves that cover large price advancements in a short time period. Kind of sounds like you would want to trade with them.Professional Techniques For Short-Term Currency Trading It should be noted that while there really is no one single leading indicator of what's to come in trading, using simple deductive analysis can always help the disciplined trader if they use the information in the right way. It was obvious that taking a short against the Yen was probably not the best play due to the half year strength of the Yen, but that we also had better odds by instead shorting the Kiwi Dollar due to its apparent weakness over the last 6 month period. As a rule-based trader, Traders should always look for specific entries and targets in any of my trades, Individual stocks have risks from the company's operations. Missing earnings, accounting irregularities, and corporate member changes are all issues we face.