What is Trading the Trend?
Trading the trend means buying when the market is going up, and selling when it’s going down.
You're following the direction of the market, not fighting it.
If the trend is up:
Price makes higher highs and higher lows
You look for chances to buy (go long)
If the trend is down:
Price makes lower highs and lower lows
You look for chances to sell (go short)
Why it works:
You’re going with momentum
Simple rule:
Buy in an uptrend, sell in a downtrend — never trade against the flow
1. Assess the chart. Where is it headed? It's headed up.
2. Place your trend line by connecting the first two points.
3. Let the chart play out for a bit. Afterwards prepare your entry on previous failed trend line retest. Set your stop loss below the previous trend line retest, and your TP just before the previous sweep above.
4. Proceed to let the chart play out, then set your pending order.
5. Watch the Trade enter and play out with patience.
This method works for bearish trends as well, just reversed.
If you would like to see more 5 step guides, comment down below.
Thank you!
Trading the trend means buying when the market is going up, and selling when it’s going down.
You're following the direction of the market, not fighting it.
If the trend is up:
Price makes higher highs and higher lows
You look for chances to buy (go long)
If the trend is down:
Price makes lower highs and lower lows
You look for chances to sell (go short)
Why it works:
You’re going with momentum
Simple rule:
Buy in an uptrend, sell in a downtrend — never trade against the flow
1. Assess the chart. Where is it headed? It's headed up.
2. Place your trend line by connecting the first two points.
3. Let the chart play out for a bit. Afterwards prepare your entry on previous failed trend line retest. Set your stop loss below the previous trend line retest, and your TP just before the previous sweep above.
4. Proceed to let the chart play out, then set your pending order.
5. Watch the Trade enter and play out with patience.
This method works for bearish trends as well, just reversed.
If you would like to see more 5 step guides, comment down below.
Thank you!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.