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Module 03 · Trend, Momentum and Confirmation

3.2Trend Strength

What you will learn
  • ·What makes a trend more credible
  • ·The observable signs of sustained direction
  • ·How to separate trend from temporary movement
Core content

A trend becomes more interesting when price consistently maintains directional structure. Look for:

  • ·higher highs / higher lows
  • ·lower highs / lower lows
  • ·sustained movement
  • ·breakout continuation
  • ·momentum expansion
  • ·shallow pullbacks

A trader should distinguish between a trend and temporary price movement.

TLHQ insight

Shallow pullbacks describe control. Deep retracements describe contest.

Example

An uptrend holding shallow pullbacks and breaking prior highs shows continuation. Deep, slow retracements that erase most of each leg suggest weakening control.

Examples use historical or illustrative data only. They are not live market signals.

Apply it

Measure the depth of the last three pullbacks in your instrument's current move and note whether they are shallowing or deepening.

Knowledge check
Check 01 · choice

Which observation supports a strong uptrend?

Check 02 · truefalse

Any two consecutive bullish candles constitute a trend.

Key takeaways
  • 01Trend strength is visible in structure and pullback depth.
  • 02Sustained movement differs from a temporary push.
  • 03Continuation past prior extremes is meaningful evidence.
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Educational content only. Nothing here is financial advice or a recommendation to trade. Trading involves risk of loss, results vary between individuals, and past performance does not indicate future results. Only capital you can afford to lose should be exposed to market risk.