Adapting to subtle changes within a trend is a key element of successful trading. It's not enough to recognise that a trend exists,to stay ahead, you need to understand how trends evolve.
From the initial surge to the steady grind,
each phase of a trend carries its own
characteristics-and knowing how to react
to these transitions is what separates a
prepared trader from one caught off guard.
The Anatomy of a Trend
In this section, we'll explore the different
types, phases, and characteristics of trends:
1. Initial Momentum Drive
The first leg of a new trend often follows a
prolonged period of sideways consolidation,
and this momentum-driven move is
typically sparked by a fundamental catalyst.Characterised by a strong surge either higher or lower, this phase usually comes with
significant volume and can even include
price gaps. The energy in this phase is
palpable; it's where the trend announ