$SOL Mastering Trend Trading: Catch the Rides of the Market
Trend trading is a method that aims to capture profits by taking the direction of a market trend—upward (bullish) or downward (bearish). Trends are identified with tools such as moving averages (for example, 50 or 200 MA), trendlines, and indicators such as MACD or ADX. The general concept is to "buy high and sell higher" in an uptrend, or "sell low and buy lower" in a downtrend. Entry signals tend to be after pullbacks to trend support or resistance. Stop-losses are set below previous lows (uptrend) or highs (downtrend) in order to control risk. Patience is important—traders remain in the position until the trend disappears or becomes bearish. It is most effective in strong, directional markets with momentum.