Pulse
Pulse – is the acceleration of the stock price or volume.
When trader sees an impulse in any stock, through news or reports, he takes a long or short position in hopes, что импульс продолжится и stock какое-то время будет идти в направлении импульса. This is a shorter-term trading strategy and requires certain skills..
With regard to day trading, these are the stocks we need for trading. A stock must have a move in order to, so that we can earn something in it. After all, it is very difficult to earn something in a security, which is in the range, especially if this range is very narrow.
Momentum creates a trend (for day trading we take intraday impulse). Respectively, when there is a trend in the stock, you can ride it very well. It is enough to find a good entry point and the momentum will do the trick..
Yes, бывают ситуации, when we enter, and the momentum has already ended and the action is unfolding. Well,, this happens and this is our risk. For this we have a stop loss. But in most cases, the trend continues and a lot depends on the "strength" of the impulse, that is, how important this news or report is for this tool and what impact it has.
It is necessary to try to work in the direction of the impulse. In other words – by trend. “Trend is your friend”.
Here's a simple example of yesterday's deal :
Summarizing, you can safely say, that trading in the direction of momentum gives a tangible advantage and confidence in the deal.
