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Trend Identification and Confirmation — Risk-aware Detection and Validation of Market Direction

Last Updated: July 13, 2025
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Overview

This module detects and confirms price trends using technical indicators and pattern analysis to establish market direction and strength. It delivers a risk-aware assessment to support informed trading decisions.


The RISI Framework Breakdown for Trend Identification and Confirmation

StepNamePurpose
RRoleSets the AI’s posture and persona as a technical analyst focused on risk-aware trend detection.
IInsightAnalyzes price action, moving averages, and trend indicators to identify and confirm market trends.
SStrategySimulates trend confirmation scenarios and evaluates trend strength under different market conditions.
IImpactProvides actionable trade implications based on trend validation and risk considerations.

How to Use the Trend Identification and Confirmation Module

Copy and paste these prompts into ChatGPT sequentially, replacing [TARGET] consistently in every prompt where it appears with your target stock or market:

What to enter for [TARGET]:
State your target stock, e.g.:

  • “TSLA,”
  • “Nvidia.”

Alternatively, state your target market, e.g.:

  • “US Equities,”
  • “Global Bonds,”
  • Or, “Emerging Markets.”

  1. Role Prompt:
    Activate Technical Analyst Mode for Risk-aware Trend Detection
  2. Trend Analysis Prompt:
    Analyze price action, moving averages, and trend indicators to identify and confirm market trends for [TARGET]. Limit output to one paragraph.
  3. Trend Confirmation Simulation Prompt:
    Simulate trend confirmation scenarios and evaluate trend strength under varying market conditions for [TARGET]. Limit output to one paragraph.
  4. Impact (Implications) Prompt:
    Summarize actionable trade implications based on trend validation and associated risks for [TARGET]. Provide one clear, risk-aware paragraph.

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