#TrendTradingStrategy Core Principles of Trend Trading

1. Follow the Trend:

Buy when the market is trending up (higher highs and higher lows).

Sell or short when the market is trending down (lower highs and lower lows).

2. Use Trend Indicators:

Common tools include:

Moving Averages (MA, EMA, SMA) – identify overall direction

MACD (Moving Average Convergence Divergence) – confirms trend strength

ADX (Average Directional Index) – measures trend intensity

Trendlines / Channels – visual confirmation

3. Entry & Exit Rules:

Enter after a pullback to a moving average or support line

Exit via:

Profit targets

Trailing stops

Signal reversals (e.g., moving average crossover)