above the high of a prior correction, then the trend is in question, and you wouldnt use this strategy. If a correction is bigger than an impulse, it violates the higher swing low rule, thus our uptrend is in jeopardy. For the trade that was taken, the price had just made a higher swing high, followed by a clear pullback which stalled out (consolidated) showing the selling momentum had slowed. In our example, the trend is down. An uptrend occurs when the price is making higher swing lows and higher swing highs. You should also review yesterdays news in order to gauge the market sentiment.
You should also review the daily outlooks which summarise the day ahead and give indications of market sentiment. Uptrend, with Higher Highs and Lows. A pioneer in developing, forex as a consumer product, easy- forex continues to lead with customized technology and personal service tailored to all levels of traders. For this webinar, gkfx Financial Services LTD cooperated with the group of global company traders, Trade With Precision. . Technical analysis can be used to spot a trading opportunity and help gauge if the trend for a particular pair may continue. All demonstrated live on the gkfx Web Trader platform. In this downtrend situation, the dialogue in your head should be something like this: As long as this correction stays below the high of the last correction, I am waiting for a trade trigger to generate a short trade signal. Mainly, as long as a correction stays above the prior swing low in an uptrend (the low of the last correction) then the trend is up, and we are looking for potential long trades.