Trend Continuation — How to use this Screener

Written By Roman N

Last updated 3 months ago

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Overview

Trend Continuation shortlists markets more likely to continue trending than chop. It’s a “pullback → continuation” workflow:

  • use the Screener to find candidates with trend + regime quality, then

  • confirm retest behavior on the chart in Magic Terminal before executing.

Timeframe versions

  • Trend Continuation (1H) (Community): fast scanning with 1H direction, regime, and momentum checks.

  • Trend Continuation (1D + 4H + 1H) (Premium): keeps 1D and 4H context visible while still timing execution on 1H.

TL;DR

  • Use it when trend is present and chop is not extreme.

  • Avoid trading hard against the EMA 200 trend pill.

  • Confirm break-and-hold or retest-hold behavior in Magic Terminal before executing.

Execution setup tips for Magic Terminal

  • Prefer limit entries at the retest area (broken level / EMA zone) instead of market-buying a strong candle.

  • Put SL past the retest failure point (where the continuation idea is clearly wrong).

  • Consider a simple, repeatable plan (fixed SL + consistent TP/management) so you can run many scans without overthinking.

  • Enable “protect profit” rules (breakeven/trailing) only after price moves away cleanly from the retest zone.

  • Use partials when continuation is valid but choppy; it reduces pressure without forcing perfection.

When to use / when to skip

Use this Screener when price action is directional and pullbacks are “normal” instead of chaotic.

Be extra selective when CHOP is very high or ADX is very low. Those conditions often produce whipsaws and false starts.

Concept

Most continuation losses come from two mistakes:

  1. trading chop as if it’s a trend, and

  2. entering late after the easy part of the move.

Trend Continuation reduces those mistakes by stacking: direction (EMA 200 trend) → regime (CHOP/ADX) → momentum confirmation (MACD/RSI) → risk realism (ATR %).

What to expect

  • You’ll usually see fewer candidates than “momentum” screens, and that’s the point: less randomness.

  • You may miss some early moves. The trade-off is fewer low-quality “late” entries.

  • When the market is choppy, the Screener can still show candidates, but Magic Terminal will often reveal messy structure. That’s a skip.

Benefits / risks

Benefits: fewer, cleaner candidates; easier invalidation planning around retests and structure.

Risks: chop can still whipsaw; late entries can pull back hard; trend breaks can be fast.

Playbook for the Community version: Trend Continuation 1H

  • Price Change % (24h): Good: positive but controlled — trend is active without blow-off | Avoid: extreme spikes — late entries | Meaning: today’s momentum; hotter requires stricter timing.

  • EMA 200 Trend 1H: Good: trade with the pill (Bullish for longs / Bearish for shorts) — higher odds | Avoid: trading against it — lower probability | Meaning: direction context for continuation.

  • EMA (50) 1H: Good: pullbacks hold above/below it in trend direction — cleaner structure | Avoid: repeated flips around it — noisy | Meaning: dynamic support/resistance zone for retests.

  • RSI (14) 1H: Good: 45–75 — momentum without exhaustion | Avoid: <45 — weak; >75 — late | Meaning: timing heat check.

  • MACD 1H: Good: Bullish or improving — momentum supports follow-through | Avoid: Bearish and falling — timing conflict | Meaning: momentum direction confirmation.

  • MACD Hist 1H: Good: rising toward/above 0 — improving momentum | Avoid: falling — momentum fading | Meaning: early momentum-change signal (often leads MACD).

  • ADX 1H: Good: >18 (best >25) — trend strength | Avoid: ≤18 — range noise | Meaning: continuation probability proxy; pair with CHOP.

  • CHOP 1H: Good: ≤70 (prefer <60) — avoid deep chop | Avoid: very high CHOP — whipsaws | Meaning: regime quality; lower CHOP = cleaner trends.

  • ATR % 1H: Good: fits your sizing plan — manageable pullbacks | Avoid: too high — stops must be wide | Meaning: volatility sizing reality check.

Playbook for the Premium version: Trend Continuation 1D + 4H + 1H

  • EMA 200 Trend 1D: Good: aligned with trade direction — macro bias supports follow-through | Avoid: strongly against you — countertrend continuation is higher risk | Meaning: bigger-picture context.

  • EMA 200 Trend 4H: Good: aligned with 1D — cleaner swing structure | Avoid: conflicts with 1D — mixed context | Meaning: swing confirmation + structure context.

  • EMA 200 Trend 1H: Good: aligned with 4H — timing in the same direction | Avoid: opposite pill — entry timing unstable | Meaning: entry-timeframe bias.

  • SGM Consensus 4H: Good: aligned with trend/context — signals agree | Avoid: opposite — mixed setup | Meaning: swing strength/bias summary.

  • RSI (14) 1H: Good: 45–75 — momentum without overheating | Avoid: <45 weak / >75 late | Meaning: timing heat.

  • MACD Hist 1H: Good: improving — momentum backs continuation | Avoid: worsening — wait | Meaning: timing confirmation after a pullback.

  • ADX 1H: Good: >18 (best >25) — trend strength | Avoid: ≤18 — range noise | Meaning: strength proxy for continuation.

  • CHOP 1H: Good: ≤70 (prefer <60) — avoid deep chop | Avoid: very high CHOP — range regime | Meaning: regime filter.

  • ATR % 1H: Good: manageable for sizing | Avoid: too high — stop distance balloons | Meaning: risk sizing and entry-style guardrail.

Preset configuration in the app

This preset already configures its recommended columns and filters. Use Screener info (ⓘ) as the source of truth for the exact configuration, and use this guide for the workflow and chart checklist.

Step-by-step example in Magic Terminal

This example uses the Community 1H version. If you selected Premium, keep the same flow but confirm 1D/4H context first.

  1. Choose **Trend Continuation**.

  2. Shortlist 3–10 rows where direction and regime quality are both supportive.

  3. Open Screener info (ⓘ) and validate each candidate with the Playbook.

  4. In **Magic Terminal**, confirm the chart story:

    • trend direction matches the pill

    • pullback/retest area is clear (level or EMA zone)

    • invalidation is obvious (retest failure point)

  5. Wait for confirmation (don’t enter mid-noise):

    • break-and-hold, or

    • retest + hold behavior on the entry timeframe.

  6. Execute with a consistent plan:

    • SL past the retest failure point

    • consider breakeven only after price moves away cleanly.


Reminder: This guide is educational and not financial advice. Use your own risk management.