#TrendTradingStrategy

Trend Trading is an approach in trading where trades are opened in the direction of the main trend. The idea is simple: "the trend is your friend".

Trend:

1. Uptrend - consecutive higher lows and higher highs.

2. Downtrend - consecutive lower highs and lower lows.

3. Flat (sideways movement) - a market without a clear direction.

Positions, how the strategy works:

1. Trend determination - use moving averages (Moving Averages), for example, the crossover of 50 SMA and 200 SMA, analyze the market structure (highs, lows);

2. Entry into position - buying in an uptrend after a correction to support, selling in a downtrend after a bounce from resistance.

3. Stop-loss and take-profit - the stop is placed below the last local minimum/maximum, the take can be determined by Fibonacci or fixed R:R.

Advantages - simple rules, high efficiency in trending markets, works well with automated systems.

Disadvantages - performs poorly in flat conditions, requires patience, often needs filtering of "noise" on small timeframes.