Who this is for — Discretionary and systematic traders who want to align setup, risk management, and exit with a clean directional phase.
A trending market is a phase where price maintains a dominant direction for multiple sessions. In this context, continuation strategies and trailing-stop management are often more coherent than counter-trend entries.
In plain terms — If the market keeps pushing in the same direction, the priority is not to "call the top", but to stay in the move while signals remain valid.
Prerequisites — Complete silver-path first (min.: context, market-conditions, scenario, no-trade-conditions). Foundation: bronze-path.
How to use it in the operational process
Recognising the trend before entry avoids expectation errors and reduces overtrading.
- Define minimum directionality criteria on the guiding timeframe.
- Cut counter-trend trades even when they look "on sale".
- Prefer dynamic exit management over targets that are too tight.
Example — After three weeks of rising highs and lows on the daily, you keep looking for intraday shorts for a "definitive pullback". Result: many small stops and no position left to run. With a trend filter you take fewer signals but they align with context.
Common mistakes to avoid
- Confusing a technical bounce with structural reversal.
- Anticipating the end of the trend without objective criteria.
- Using size that is too large just because it "looks easy".
Card
- What it is: regime where price maintains a prevailing direction.
- What changes: higher priority for continuation setups and trailing stops.
- Quick check: verify swing high/low structure and relative strength.
Gold path — Module: Regime adaptation. Part of gold-path.