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