CHAPTER 02 · LESSON 01

Trend basics

One fast move is not enough to establish a trend. Trend language should describe a continuing relationship between swing highs, swing lows, progress and pullback.

Direction and persistence

Identify whether meaningful swing points continue to progress in one direction. Fix the timeframe and observation window before assigning a label.

Progress and pullback

A trend contains both movement and correction. A pullback does not automatically reverse the trend, while weak progress can reduce confidence in continuation.

Invalidation

State which structural change would make the current label no longer useful, and reassess when that evidence appears.

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