#TrendTradingStrategy Trend trading focuses on identifying sustained price moves—either upward or downward—and riding them for as long as momentum holds. It’s not about guessing reversals, but capitalizing on established trends .
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🛠️ Core Strategy Steps
1. Spot the trend
Use tools like moving averages (MA), ADX, and trendlines to determine trend direction and strength .
Example: 50‑day MA crossing above 200‑day = bullish trend.
2. Confirm momentum
Leverage RSI, MACD, or ADX > 25 as confirmation of trend integrity .
3. Time your entry
Enter on pullbacks in an uptrend or minor rallies in a downtrend to optimize risk–reward .
4. Manage risk
Always set a stop-loss just below the last swing low (uptrend) or above swing high (downtrend) .
Define position size based on volatility and account risk (e.g., 1–2%).
5. Ride & exit
Use trailing stops to let profits run until momentum fades or trend indicators weaken .
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✅ Why It Works (And When It Doesn’t)
Pros:
Captures sustained moves with fewer trades.
“The trend is your friend”—high probability when momentum is real .
Cons:
Can yield false signals in sideways markets—stay alert.
Exit timing is key; trailing stops help .
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💡 Practical Example on Binance
Market: BTC/USDT
Signal: 50-day MA crosses above 200-day MA → enter on pullback.
Entry: $X level after minor dip.
Stop-loss: Below recent swing low.
Exit: When RSI shows overbought or trend weakens (e.g., 50-day MA flattens).
