Trend trading strategy involves identifying and following the direction of a market’s overall movement, whether upward (bullish) or downward (bearish). Traders use technical indicators like moving averages, MACD, RSI, and trendlines to confirm the trend’s strength and entry points. The goal is to enter a trade early in the trend and hold the position until signs of reversal appear. Trend traders often use trailing stop-loss orders to lock in profits while allowing room for natural price fluctuations. This strategy works best in markets with clear directional momentum and is suited for medium to long-term trading. Patience and discipline are crucial, as trends can last from days to months. Successful trend trading relies on riding the trend, not predicting reversals.
