#TrendTradingStrategy

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✅ Core Principles of Trend Trading

1. “The trend is your friend” — Trade in the direction of the trend.

2. Higher highs and higher lows → Uptrend

Lower highs and lower lows → Downtrend

3. Use technical indicators to confirm the trend and entry/exit points.

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🔍 Trend Identification Tools

• Moving Averages

• 50-day and 200-day SMA (Simple Moving Average)

• Crossovers (e.g., Golden Cross, Death Cross)

• Trendlines / Channels

• Connect swing highs/lows to visualize the trend.

• Price Action

• Structure analysis (e.g., breakouts, consolidation, pullbacks)

• Indicators

• MACD (Moving Average Convergence Divergence)

• ADX (Average Directional Index) – measures trend strength

• RSI – to avoid overbought/oversold entries