Free lessons › Trend Continuation › Continuation Entries
Momentum confirmation
Volume, range expansion, and acceptance back in trend.
8 min · Intermediate
What you'll learn
- Identify the three signs of momentum returning after a pullback: volume, range expansion and acceptance.
- Compare the resumption candle with the pullback candles using simple ratios.
- Use an acceptance check to decide whether to hold or cut a continuation trade early.
Key takeaways
- A swing point is permission; momentum returning is confirmation.
- Look for volume and range clearly larger than the pullback candles.
- The confirmation close should be near the candle's extreme and beyond the pullback.
- The next candle's close is an acceptance test for the trade.
- Cutting early on failed acceptance often keeps a loss well under 1R.
Glossary
- Range expansion — A candle whose high-to-low range is clearly larger than recent candles, showing increased participation.
- Resumption candle — The first strong candle that moves back in the trend direction after a pullback.
- Acceptance check — Confirming that the next candle does not close back inside the pullback after entry.
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