In the video below I go over how I setup my charts for options trend following with credit spreads. I primarily use an Average True Range Trailing Stop to identify both trend trading direction and my stop level, but I also look at moving averages and the relationship of implied and historical volatility.
After going through the chart setup, I evaluate a trend following credit spread to see whether or not my risk parameters are met. The discussion looks at an overextended market, the Russell 2000 (IWM), for an entry point. Enjoy.