Technical Glossary / Trend Analysis
Trend Strength
How persistent and directional a move is, as opposed to how far one bar travelled.
Teaching sketch. It shows the shape, not a live quote and not a trade signal.
Definition
Trend strength is the quality of the trend, not a single indicator. A strong trend makes progress with shallow pullbacks, overlapping little, and spending most of its time on one side of a short moving average. A weak trend chops, retraces deeply, and needs every bar to be watched. ADX, slope, and swing structure are ways to describe it. None of them is the definition.
How it works
Look at pullback depth as a fraction of the prior swing, at how often price closes against the trend, and at whether highs and lows are clean. ADX rising above 25 is a common label for a strong directional move, and it does not say which direction. The direction is the price.
How traders use it
Strong trends reward trailing and punish fading. Weak trends reward fading the edges and punish breakout chasing. Match the tool to the strength. A reversal pattern in a strong trend fails more often than the same pattern in an exhausted one.
Common mistakes
Equating a vertical bar with strength. A spike can be the end. Strength is repetition of swings, not one candle's size.
Limitations
Strength is backward-looking. A trend can be strong and one bar from a climax. Use strength to choose a style, not to skip a stop.
This note explains the term. A sketch shows the shape of the idea. Neither is a recommendation, a signal, or a comment on any security. Indicator settings and exchange conventions differ. Check the live chart and the contract specification before you use a number.