Trend trading strategy is a popular approach where traders capitalize on the momentum of an asset’s price by following its established direction, whether upward or downward. The core idea is that once a trend begins, it often continues for some time, allowing traders to enter positions aligned with the trend and ride it for profits. This strategy relies on tools like moving averages, trendlines, and volume analysis to identify and confirm trends. It works well in both bullish (uptrend) and bearish (downtrend) markets, providing flexibility. Effective risk management, including setting clear exit points, is essential to protect gains and limit losses. Trend trading helps traders avoid predicting market turns and instead focuses on following confirmed price movements for consistent results.
