#TrendTradingStrategy

Trend trading is a strategy where traders follow the direction of the market — buying when prices are rising (uptrend) and selling or shorting when prices are falling (downtrend).

🔍 Key Elements:

1. Identify the Trend

Use indicators like Moving Averages (MA) or Trendlines

Example: If the 50-day MA is above the 200-day MA → Uptrend

2. Confirm with Volume & RSI

High volume supports trend strength

RSI (Relative Strength Index) helps avoid overbought/oversold traps

3. Entry Points

Enter on pullbacks (price dips in an uptrend)

Use support levels as buy zones in an uptrend

4. Exit Strategy

Take profit near resistance levels

Use trailing stop-loss to lock gains if trend reverses