#TrendTradingStrategy #ShariaEarn
Trend trading is a strategy that focuses on capturing profits from sustained market movements in a particular direction. Traders identify whether the market is in an uptrend or downtrend using tools like moving averages (EMA 50, EMA 200), trendlines, and higher highs or lower lows on charts. In an uptrend, traders buy when the price retraces to support or EMA levels and shows a bullish confirmation candle. In a downtrend, they short sell when the price pulls back to resistance levels. Trend trading works best in strong markets with momentum. Indicators like MACD and RSI confirm trend strength and entry points. A key part of this strategy is to hold positions patiently until the trend reverses, maximising profits. Stop-losses are placed below recent swing lows in an uptrend or above swing highs in a downtrend to manage risk. Trend trading requires discipline to follow the trend without exiting early due to minor price fluctuations.