Trends

TrendsLesson 1 of 93 min read

Why trend first

Markets move on momentum, so a move that has started tends to keep going. Direction is the first thing you read and everything else sits on top of it.

Before any strategy and any entry, one question comes first. Which way is this market going.

Markets run on momentum

A ball pushed across a flat floor keeps rolling until something stops it. Price behaves in a similar way.

Once a market has been pushed into a direction, it tends to carry on in that direction rather than turn around.

A move already under way continues more often than it reverses.

What gives price the push

The push comes from a shift in structure, meaning the pattern of highs and lows changes. Module 6 covers exactly how that shift is marked.

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