Bitcoin/Tether
Education

Why Most Traders Misread Trends!!! (Fix It in 10 Seconds)

5 056
Every trader talks about trends.
Few actually understand how to read them.

Most traders think a trend is defined by:
- a diagonal line
- a moving average
- or a breakout


But the truth is much simpler... and far more powerful:

A trend is defined by the quality of its pullbacks.

📚Here’s the 10-second method professionals use:

1️⃣ Shallow Pullbacks = Strong Trend

When pullbacks barely retrace and reverse quickly,
it means one side is overwhelming the other.

snapshot

Momentum is healthy.
Continuation is likely.

A shallow pullback tells you:
➡️ “Don’t fade this. Follow it.”


2️⃣ Deep Pullbacks = Weakening Trend

When price retraces deep into the previous leg,
momentum is slowing and imbalance is shrinking.

snapshot

Buyers are less aggressive.
Sellers are gaining confidence.

A deep pullback tells you:
➡️ “Trend still alive, but the engine is cooling.”


3️⃣ Chaotic Pullbacks = Trend Is Dying

If pullbacks become wide, choppy, overlapping, messy,
the trend is no longer in control.

snapshot

It’s not a trend anymore.
It’s a negotiation.

A chaotic pullback tells you:
➡️ “Stop trading the trend. Wait for structure.”


📚Final Thought

The market isn’t random... it’s rhythmic.
And pullbacks are the rhythm.

Once you learn to read that rhythm, you’ll stop fighting trends…
and start flowing with them.

⚠️ Disclaimer: This is not financial advice. Always do your own research and manage risk properly.

📚 Stick to your trading plan regarding entries, risk, and management.

Good luck! 🍀

All Strategies Are Good; If Managed Properly!
~Richard Nasr

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.