#趋势交易策略 Trend Trading Practical Guide: How to Continuously Capture Major Market Trends

1. Core Logic of Trend Trading

Trend trading is based on the market rule that "once a trend is formed, it often lasts for a period of time". By identifying and following the main trend direction, traders can profit. This strategy is particularly suitable for:

• Markets with clear one-way trends

• Mainstream trading varieties with sufficient liquidity

• Medium to long-term investment time frames

2. Key Operational Steps

Trend Identification Methods:

Moving Average System: 50-day/200-day moving average direction

Trend Line: Connecting consecutive highs or lows

MACD Indicator: Position of the fast and slow lines and changes in the histogram

Precise Entry Timing:

√ Trend pulls back to support/resistance levels

√ Breakthrough of short-term consolidation range

√ Technical indicators show second confirmation signals

Position Management Principles:

Initial position not exceeding 5%

Pyramid-style position increase

Single variety position limit of 15%

3. Intelligent Risk Control System

Dynamic Stop Loss Strategy:

Fixed percentage stop loss (1-2%)

Technical stop loss (previous lows/highs)

Volatility stop loss (2 times ATR)

Trend Following Take Profit:

Moving average take profit

Exit when trend line is broken

Take profit in batches at Fibonacci extension levels

4. Secrets to Improve Winning Rate

Multi-timeframe Analysis:

Weekly chart determines direction

Daily chart finds opportunities

Hourly chart for precise positioning

Volume-Price Coordination Verification:

Volume steadily increases in the trend

Significant increase in volume during breakthroughs

Volume shrinks during pullbacks

Market Environment Selection:

Avoid major economic data release times

Choose main trading periods

Avoid times of insufficient liquidity

5. Practical Considerations

Common Pitfall Warnings:

Counter-trend trading

Premature take profit

Overtrading

Psychological Discipline:

Patiently wait for trend confirmation

Strictly follow the trading plan

Maintain emotional stability

Continuous Optimization:

Regularly review trading records

Statistical strategy performance

Adjust parameters to adapt to market changes