#TrendTradingStrategy 📈 Trend Trading Strategy – Step by Step

1. Identify the Trend

Use tools like:

Moving Averages (e.g., 50 EMA & 200 EMA)

Trendlines

→ If price makes higher highs/lows = Uptrend

→ Lower highs/lows = Downtrend

2. Confirm with Indicators

RSI (above 50 in uptrend, below 50 in downtrend)

MACD crossover in trend direction

Volume increasing with price = strong trend

3. Enter Trade (Breakout or Pullback)

Breakout Entry: Enter when price breaks key resistance/support

Pullback Entry: Enter on a retracement to MA or trendline

4. Set Stop-Loss

Below recent swing low (uptrend) or high (downtrend)

Use ATR (Average True Range) to set smart SL distance

5. Set Take-Profit

Use Risk:Reward ratio (e.g., 1:2 or 1:3)

Or exit on trend reversal signal (e.g., MA cross, RSI divergence)

6. Trail Stop or Partial Exit (Optional)

Lock profit as price moves

Use moving average or trailing stop

7. Manage Risk

Risk 1–2% of capital per trade

Stick to your plan and avoid overtrading