You buy during an uptrend and sell (or short) during a downtrend, aiming to stay in the trade as long as the trend remains intact.
> “The trend is your friend — until it ends.”
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🔵 Key Elements of Trend Trading
1. Identify the Trend
Uptrend: Higher highs + higher lows
Downtrend: Lower highs + lower lows
Sideways/Range: Price moves in a horizontal zone (no clear trend)
2. Confirm the Trend
Use indicators like:
Indicator Signal Use
📏 Moving Averages (MA, EMA) Price above 50/200 MA = uptrend
📈 MACD (Trend Strength) Bullish crossover = uptrend
📊 ADX (Trend Strength) ADX > 25 = strong trend
🔁 Trendlines Connect swing highs/lows for visual confirmation