#TrendTradingStrategy
A trend-following strategy aims to profit by identifying and riding the direction of market trends. Traders use technical indicators like moving averages, MACD, or ADX to confirm the trend's existence and strength. The core idea is to "buy high and sell higher" in an uptrend, or "sell low and buy lower" in a downtrend. Entry signals are generated when a trend is confirmed, and exits occur when the trend shows signs of weakening or reversal. Risk management is crucial, often involving stop-loss orders to limit potential losses if the trend fails. This strategy capitalizes on market momentum, assuming that established trends are more likely to continue than to reverse abruptly.