#TrendTradingStrategy

Here is a comprehensive summary of the Trend Trading Strategy:

📌 What is the Trend Trading Strategy?

The Trend Trading strategy relies on taking advantage of clear market movements — whether bullish or bearish — and holding positions as long as this trend continues. The main idea is to “ride” the trend rather than trying to time the top or bottom.

🔍 Basic Principles

1. Identifying the Trend

• Using indicators such as Moving Averages (SMA/EMA), Average Directional Index (ADX), or Bollinger Bands, MACD, RSI.

• Observing the movement for the price to form a “higher high and higher low” in an upward trend, or the opposite in a downward trend.

2. Entry and Exit Signals

• Moving Average Crossovers: such as the “Golden Cross” or “Death Cross”.

• Support/Resistance Breakouts: entering at the break of an important level.

• Pullbacks: waiting for a minor correction before entering to enhance profit opportunities.

3. Risk Management

• Using stop-loss to minimize losses.

• Trailing stop to lock in profits as the trend continues.

• Assessing position size and capital used according to the accepted risk ratio (typically 1–2%).