Trends & Momentum
A trend is a direction; momentum is its strength. Both can reverse.
In Simple Words
An uptrend means prices are generally making higher highs and higher lows; a downtrend the opposite; a sideways market moves within a range. Momentum measures how strong the move is. The Trend Detector reads these from price data and can produce signals such as BUY or SELL indications.
Why It Matters
Trading with the trend is a common principle, but trends can reverse at any time. A signal is a research/trading indication, not a guarantee.
Key Terms
Prices making higher highs and higher lows overall.
Prices making lower highs and lower lows overall.
The period each bar represents (minutes, days, weeks). Trends differ by timeframe.
How to Interpret It
A BUY indication is a research/trading signal generated from the tool's methodology. It is NOT a guarantee that price will rise. Always pair it with risk management (a stop-loss plan).
Beginner Mistakes
- Treating a BUY indication as a guarantee the price will rise.
- Ignoring the timeframe when reading a trend.
Try It Yourself
Open the Trend Detector for one ticker. Identify the trend direction and one risk you'd plan for before any trade.
Key Takeaway
A BUY indication is a signal, not a guarantee. Trends can reverse — always plan risk.
Open the real tool to practice.
Knowledge Check
Choose an answer, then check.1. A BUY indication means…
2. Trends can differ by…
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Trading Basics
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