#趋势交易策略 The Path to Profit by Following the Trend

Trend trading is an investment strategy based on directional fluctuations in the market. Its core logic is 'follow the trend'—going long in an uptrend and shorting in a downtrend. Its advantages include reducing frequent trading, lowering friction costs, and allowing for significant profit potential in a one-sided market.

Key Elements

1. Trend Identification: Determine market direction through technical tools (such as moving averages, trend lines, MACD) to distinguish between upward, downward, and sideways trends.

2. Entry Timing: Enter when the price pulls back to support (in an uptrend) or rebounds to resistance (in a downtrend), combined with breakout signals or moving average retracement strategies.

3. Risk Management: Strict stop-loss (e.g., breaking the trend line or previous low), partial profit-taking, with individual trade positions typically not exceeding 5% of total capital.

Classic Strategies

• Breakout Trading: Enter when the price breaks through previous highs.

• Moving Average Following: A price rebound after pulling back to MA20/MA50 is seen as a signal of trend continuation.

• Trend Channel: Buy low and sell high within the channel, with trends steeper than 50 degrees showing greater momentum.

Trend trading requires long-term practice and discipline, suitable for swing or algorithmic traders.