#TrendTradingStrategy What Is Trend Trading?

Following the prevailing direction of an asset—up or down—using technical tools to ride the momentum until signs of reversal appear .

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🔑 Core Tactics

Moving Average Crossovers (e.g., 50‑day over 200‑day) signal potential trend starts .

Breakouts & Pullbacks: Enter when price breaks support/resistance or dips back into a strong trend .

Trendlines & Channels: Trade off bounce points on drawn trendlines or channel boundaries .

Momentum Confirmation: Use MACD, RSI, OBV to assess trend strength and avoid weak signals .

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🛡️ Risk Management Essentials

Trailing or dynamic stops (e.g., ATR, Parabolic SAR) lock in profits while following the trend .

Position sizing: Risk only ~1–2% per trade .

Risk/reward filter: Aim for setups offering ≥ 2:1 potential .