#TrendTradingStrategy Trend Trading Strategy: A Simple Guide
š What is Trend Trading?
Trend trading is a strategy that involves identifying and following the direction of the market trendāuptrend (bullish), downtrend (bearish), or sideways (range-bound)āto make profitable trades. The goal is to "buy high and sell higher" in uptrends or "sell low and buy lower" in downtrends.
š Key Elements of a Trend Trading Strategy:
Identify the Trend
Use Moving Averages:
50-day and 200-day moving averages help spot long-term trends.
9/21 EMA for short-term trades.
Trendlines & Channels: Draw lines connecting higher lows (uptrend) or lower highs (downtrend).
Indicators:
MACD ā confirms trend strength.
ADX (Average Directional Index) ā