Trend trading is a technique that includes identifying market momentum using technical indicators. It is founded on the assumption that markets have some predictability and that a trader can forecast what will happen in the future by studying past patterns and price movements.
Trend investing is generally thought of as a medium- to long-term trading strategy, but depending on how long the trend lasts, it can potentially span any timeframe. Traders who prefer a position trading or swing trading style are likely to use it. Swing traders recognize a trend and ride it from start to finish, while position traders will keep trade for the prevailing trend’s duration, ignoring day-to-day fluctuations.
Trend trading strategies are intended to help you identify trends as early as possible and exiting the market before the trend reverses. The opening and closing prices and the trading range of each candle provide traders with a wealth of data that can be used to determine the trend’s ebb and flow.
There are three types of primary trends: uptrends, downtrends, and sideways movements.
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