#TrendTradingStrategy
Trend trading is a simple yet powerful strategy where you trade in the direction of the overall market trend. In my Trend Trading Strategy, I use the 50 EMA and 200 EMA on the 4-hour chart to identify the main trend.
If the 50 EMA is above the 200 EMA, it indicates an uptrend, and I look for long opportunities. If it’s below, I focus on short trades.
I also confirm with RSI to check for momentum. Entering with the trend increases the probability of success. I place my stop loss below the recent swing low for longs or above swing highs for shorts.
Trend trading requires patience because trends take time to develop. Never trade against the trend without a valid reversal signal.