A market trends up when it prints higher highs and higher lows, and trends down with lower highs and lower lows. Structure is the roadmap.
Momentum is the strength of the move, often read through the slope and the size of successive candles.
Trading with the trend is higher probability than trying to catch reversals. Reversals are for advanced traders with strict risk.
Define the trend on a higher timeframe, then find entries on a lower one.
Takeaways
- An uptrend prints higher highs/lows; a downtrend prints lower highs/lows.
- Momentum reflects the strength behind a move.
- Trading with the trend is higher probability than catching reversals.
Self-check
Which is generally higher probability for beginners?
Trading in the direction of the established trend.
Trading involves risk. Educational only, not advice. Mark it complete to bank progress.