Direction continues until it proves that it will not. Easily said, but when this proof emerges is for the trader to decide (read about how trends can work against this here).
There’s no better way to test than by posing substantial technical counterarguments. This week equity and currency markets, especially are on the precipice of change. Whether they’ll go over the edge before them is the question. Here are a few pairs I have my eye on, always asking, “does the prevailing trend stands up to scrutiny?”
Usually the answer will be “yes” – but one can’t know otherwise if they don’t ask and examine.