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Playbook C

Trend Continuation

Trade with the trend after a controlled pullback, entering only when momentum resumes.

Market Conditions
  • —Stock is clearly trending (higher highs / higher lows or lower highs / lower lows)
  • —Market (SPY / QQQ) is aligned with direction
  • —No major news risk
Setup Criteria
  • —Strong move in one direction
  • —Pullback to key moving average (9 EMA / 20 EMA)
  • —Pullback to support / resistance zone
  • —Volume dries up on pullback
  • —Buyers/sellers step back in at level
Entry Rules
  • —Enter only when momentum resumes (confirmation candle)
  • —Avoid chasing extended moves
  • —No entry if structure is unclear
Stop Loss
  • —Below pullback low (for long)
  • —Above pullback high (for short)
Take Profit
  • —Previous high/low
  • —OR fixed R:R (1.5R – 2R)
Invalidation
  • —Break of structure
  • —Weak continuation (low momentum)
Mistakes to Avoid
  • —Entering during pullback (too early)
  • —Overtrading choppy conditions
  • —Ignoring overall market direction
My Rule

Only take this setup when it is clean, obvious, and aligned with trend. No forcing trades.