Trend trading strategy is a trading strategy where the trader trades by following the ongoing market trend. If the market is in an uptrend, a buy trade is taken; and if it is in a downtrend, a sell trade is taken. The main mantra of this strategy is – "Trend is your friend." That is, staying with the ongoing trend is safe. Tools such as Moving Average, RSI, and MACD are used to identify the trend. For example, if the price is above the 200 EMA and the RSI is above 50, then it is assumed that an uptrend is occurring. This strategy is suitable for long-term traders and has a good risk-reward ratio.

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