Trend trading is a strategy that focuses on capturing gains by identifying and following the direction of the market—uptrend, downtrend, or sideways. Traders enter positions in the direction of the trend and hold them until signs of reversal appear. Key tools include moving averages (like the 50 and 200 EMA), RSI, MACD, and trendlines. In an uptrend, buy on pullbacks; in a downtrend, short on rallies. Patience is crucial—trend traders avoid frequent trades and focus on riding long moves. Combine with proper risk management and trailing stop-losses to protect profits. “The trend is your friend—until it ends.
