#TrendTradingStrategy
What is the trend trading strategy?
– It relies on riding the prevailing market trend, whether upward or downward: “Buy in an upward trend, and sell/short in a downward trend.”
– Do not try to time the bottom or the top, but continue in the direction until a tangible reversal appears ().
⸻
🔧 Tools and indicators used
1. Moving Averages (MA/EMA)
• Crossing of averages (such as the 50-day crossing above the 200-day); known as Golden/Death Cross
2. MACD
• Consists of two lines (12‑26 EMA and 9 EMA); a bullish or bearish crossover used to determine entry and exit points
3. RSI
• A momentum indicator that measures overbought or oversold conditions. Values above 70 or below 30 are used to confirm the strength or beginning of a trend reversal