#TrendTradingStrategy

Trend trading is a strategy that seeks to profit from the directional movement of asset prices. The core idea is to identify a prevailing trend – either uptrend or downtrend – and enter trades in the direction of that trend.

Traders often use technical indicators like moving averages, MACD, or ADX to confirm trends and identify entry/exit points. For an uptrend, one might buy and hold as long as the price stays above a rising moving average. In a downtrend, short-selling would be the preferred approach.

Risk management is crucial, typically involving stop-loss orders to limit potential losses if the trend reverses unexpectedly. The strategy assumes that "the trend is your friend" until it bends.