A trend is a sustained price vector. The definition of a trend varies, depending on volume scale. A quantum trend is a change in price of at least 0.05%.
An Exemplary Trend
The trend below started hesitantly after reversal (step 1). The 2nd step was steeper. Such behavior is common for a trend: a tentative start that steepens in its 2nd step. As a rule of thumb, the best entry point is when the 2nd step begins.
Toward the end, the trend staggered (step 5). Beware such behavior, which foretells consolidation, pullback, or exhaustion before reversal.
Trading Trends
Betting long on trend continuation requires certainty. Betting short on trend exhaustion requires only recognition. Market context matters in how to trade trends.
On sessions with vitality, trends form cleanly among crackers. Trades long and short can be viable when stocks are lively.
When the market is in the doldrums, randomness reigns. Certainty collapses.
The tenable trades on dispirited days come from recognizing peaks and riding the reversal down. The after-the-fact tape during such sessions may read up and down. But looking forward in the moment, minuteable trends are one-sided: down toward the mean or even lower.