#TrendTradingStrategy 📈 What is Trend Trading?

Trend Trading is a strategy where traders enter positions in the direction of the prevailing market trend—either bullish (uptrend) or bearish (downtrend)—and hold until signs of reversal or exhaustion appear.

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🔑 Core Components of a Trend Trading Strategy

1. Identifying the Trend

Tools used:

Moving Averages (e.g., 50 EMA, 200 EMA)

Trendlines

ADX (Average Directional Index)

Price Action (higher highs & higher lows = uptrend; lower highs & lower lows = downtrend)

2. Entry Signals

Buy: When price pulls back to support in an uptrend (e.g., 50 EMA bounce)

Sell: When price rallies to resistance in a downtrend

Breakout Entries: Entering when price breaks above recent highs or below recent lows

3. Stop-Loss Placement

Below recent swing low in an uptrend

Above recent swing high in a downtrend

4. Take-Profit Targets

Use Fibonacci extension levels (e.g., 1.618)

Trailing stops based on ATR (Average True Range)

Trendline targets or previous major highs/lows

I am not your financial advisor