The Difference Between Trend Continuation and Trend Exhaustion
A strong price movement does not always mean the trend will continue.
Signs traders may study:
Trend continuation:
• Strong directional displacement.
• Healthy pullbacks.
• Repeated structural confirmation.
• Sustained participation.
Possible exhaustion:
• Failed continuation attempts.
• Reduced price progress.
• Strong rejection near important levels.
• Divergence in supporting indicators.
No single clue confirms exhaustion.
Do you find it easier to identify trend continuation or reversals?