#TrendTradingStrategy A trend trading strategy is an approach where traders open positions in the direction of the prevailing trend in the market, expecting that the current trend will continue. In other words, if the price of an asset is rising, traders enter long positions (buying), and if the price is falling – into short positions (selling).
Key principles of a trend strategy:
Identifying the trend:
Trends can be upward (bullish), downward (bearish), and sideways (flat).
Determining entry and exit points:
Traders look for points where the price has retraced to the trend line or shows reversal candles to enter a position.
Risk management:
It is important to set stop-losses and take-profits to protect capital and secure profits.
Analysis:
Technical indicators (moving averages, trend lines, momentum indicators) and graphical analysis are used to identify the trend and entry/exit points.
