Trend Trading Cheat Sheet

Formation: Each swing high and swing low prints above the previous one

Context: Confirms bullish market structure is intact

Reliability: ⭐⭐⭐⭐⭐ (Foundational)

Key: A broken higher low warns the uptrend may be ending

Formation: Each swing high and swing low prints below the previous one

Context: Confirms bearish market structure is intact

Reliability: ⭐⭐⭐⭐⭐ (Foundational)

Key: A broken lower high warns the downtrend may be ending

Formation: Price trades on one side of a rising or falling moving average (e.g. 20/50 EMA)

Context: Slope direction confirms whether buyers or sellers are in control

Reliability: ⭐⭐⭐⭐ (High as a filter)

Key: Flattening slope signals the trend is losing momentum

Formation: Price closes decisively through a well-tested rising or falling trendline

Context: First warning sign the current trend is exhausting

Reliability: ⭐⭐⭐ (Moderate, needs confirmation)

Key: A retest of the broken trendline strengthens the signal

Formation: Whole-number price levels ending in .0000, where clustered stop and limit orders sit

Context: Trends frequently stall, pause, or reverse as price approaches a big figure

Reliability: ⭐⭐⭐⭐ (High, especially on higher timeframes)

Key: Watch for slowing momentum and rejection candles as price nears the level

Formation: Mid-point levels ending in .0050, a secondary magnet between big figures

Context: Acts as a minor psychological pause point within a larger trend leg

Reliability: ⭐⭐⭐ (Moderate, weaker than a full big figure)

Key: Strongest when it lines up with an existing supply/demand zone

Formation: A round number lands directly inside or on the edge of a supply or demand zone

Context: The highest-probability reversal setups combine psychological levels with institutional zones

Reliability: ⭐⭐⭐⭐⭐ (Very High)

Key: Prioritise these confluence levels over either signal alone

Formation: Price spikes just beyond a round number, sweeps resting stops, then sharply reverses

Context: Common at the end of an extended trend leg into a big figure

Reliability: ⭐⭐⭐⭐ (High once the reversal candle closes)

Key: Wait for a strong rejection close back through the level before entering

Formation: A candle with a range 2-3x the recent average closes strongly through a key level

Context: Signals a sudden shift in supply/demand and institutional participation

Reliability: ⭐⭐⭐⭐ (High when it closes near its extreme)

Entry: Enter on the break of the large range candle's high, stop below its low

Formation: After a large range candle prints, price pulls back into its body before continuing

Context: The origin or midpoint of the large candle often acts as fresh support/resistance

Reliability: ⭐⭐⭐⭐ (High, better risk:reward than chasing the breakout)

Entry: Enter on rejection at the 50% level of the large range candle, stop beyond its full range

Formation: A tight consolidation of small candles is followed by one candle that expands far beyond the recent range

Context: Marks the point where the trend resumes after a period of contraction

Reliability: ⭐⭐⭐⭐ (High in a confirmed trend)

Entry: Enter on the close of the expansion candle, or on a shallow retrace into the consolidation high/low

Formation: After an extended move, price prints an oversized candle in the opposite direction, often at a round number or zone

Context: Frequently marks a fakeout or exhaustion move that flips the trend

Reliability: ⭐⭐⭐⭐ (High at confluence, weaker in isolation)

Entry: Enter on the retest of the reversal candle's midpoint, stop beyond its extreme