#趋势交易策略 Trend Trading Strategy is a method of trading that follows the existing trends in the market, with the core principle being 'follow the trend'. It does not attempt to predict trend reversals but instead captures opportunities for trend continuation.

Core Principles

• Identify Trends: Determine the direction of the trend through price movements (e.g., higher highs/lows indicate an uptrend, while lower highs/lows indicate a downtrend) or technical indicators.

• Enter in the Direction of the Trend: Look for buying opportunities after a pullback in an uptrend and selling opportunities after a rebound in a downtrend.

• Set Stop-Loss for Exit: Set stop-loss points (e.g., when breaking below trend lines or key support levels) to control losses when a trend reversal occurs.

Common Tools

• Moving Averages: Such as the 50-day and 200-day moving averages; an upward-moving average with prices above it signals an uptrend.

• Trend Lines: Connect consecutive highs or lows; breaking through a trend line may indicate a change in trend.

• Momentum Indicators: Such as MACD and RSI, which help assess trend strength and avoid chasing prices up and down.

This strategy is suitable for markets with clear trends and may easily fail in sideways markets, requiring flexible adjustments based on market conditions.