#TrendTradingStrategy
Trend Trading Strategy
Trend trading focuses on riding the market’s momentum by following the dominant direction of price. Here’s how to apply it:
✅ Identify the Trend: Use tools like Moving Averages (50 & 200 EMA) or Trendlines to spot upward or downward trends.
✅ Enter with the Trend:
Uptrend: Look for higher highs & higher lows → Go Long
Downtrend: Look for lower highs & lower lows → Go Short
✅ Use Indicators for Confirmation: RSI (above 50 in uptrend, below 50 in downtrend) and MACD for momentum.
✅ Set Stop-Loss: Below the recent swing low in an uptrend, or above the recent swing high in a downtrend.
✅ Trail Your Profits: Use a trailing stop or moving average to lock in gains as the trend continues.
🔥 Pro Tip: “Trend is your friend” – avoid trading against strong trends!