📈 #TrendTradingStrategy : How to Ride Major Trends with Technique, Discipline, and Control 🌊
Trend trading (or "trend following") is based on entering and staying in a trend until it reverses. The central idea? Prices follow trends — and capturing this movement is the heart of the strategy
www.moneytheory.com
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🧰 Essential Tools
Moving Averages (SMA/EMA): crossovers such as EMA(20) above EMA(50) or SMA(50) crossing SMA(200) (golden cross) are classic signals of an upward trend
Medium
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Cryptohopper
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Avatrade
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Momentum Indicators (RSI / MACD): RSI identifies overbought/oversold; MACD signals crossovers and divergences to confirm trend strength
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Avatrade
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www.moneytheory.com
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Bollinger Bands / ATR: assess volatility in active markets like crypto — useful for adjusting stops and avoiding noise
Medium
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Volume / OBV / MFI: essential to validate trend sustainability, avoiding false breakouts or silent reversals
MarketWatch
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🧭 Implementation Strategy
Stage Recommended Action
Identify the Trend Use moving averages and price action (like ascending or descending tops and bottoms) to confirm overall direction
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Entry Point Wait for a close above a larger average, with volume and confirmation from RSI or MACD.
Risk Management Set stop-loss below swing low or relevant support (1‑2% of capital). Minimum Risk/Reward of 1:2 or 1:3 .
Position Exit Close below the moving average used or signs of weakness in the indicator (RSI/MACD) .
⚠️ Benefits & Risks
✅ Advantages: potential for significant gains, operational simplicity, and discipline. Ideal structure for traders who want to follow the market, not predict unexpected reversals
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