#TrendTradingStrategy

Trend trading is a strategy focused on identifying and profiting from the sustained directional movement of an asset's price. The core principle is "the trend is your friend," meaning traders aim to align their positions with the prevailing market direction.

Traders use technical indicators like moving averages, trend lines, and momentum oscillators (e.g., MACD, RSI) to detect uptrends (higher highs and higher lows) or downtrends (lower highs and lower lows). Once a trend is identified, they enter positions in the same direction—buying in an uptrend, short-selling in a downtrend—with the expectation that the momentum will continue. Risk management is crucial, typically involving stop-loss orders to limit potential losses if the trend reverses.