Strategy Library

Trend Continuation

Buy pullbacks in an uptrend, sell rallies in a downtrend. Boring works.

The trend-continuation play is the highest-expectancy setup over a large sample: identify the direction, wait for a pullback to a moving average or zone, enter with the trend. Boring. Profitable.

How to identify it

  1. Confirm trend on H4: higher highs + higher lows (bullish) or lower highs + lower lows (bearish).
  2. Wait for pullback to the 20 / 50 EMA, a previous swing, or an FVG.
  3. Look for a reversal candle pattern at the pullback zone.

Trading rules

  • Trade ONLY in the H4 trend direction.
  • SL beyond the pullback's extreme.
  • TP at the previous swing extreme or 1.5R minimum.
  • Skip if H4 starts forming an opposite structure (lower low in uptrend).

Common pitfalls

  • Fighting the trend after a small reversal โ€” wait for confirmation.
  • Entering too far from the pullback zone (chasing).
  • Holding through a clear trend reversal because 'it'll come back'.

When to use it

Best during active sessions. Combine with the daily open for context.

Best pairs

XAUUSD, GBPUSD, USDJPY

Best session

London / New York

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