Without a doubt 1 of the easiest and also best means to start stacking the odds in your favor is to start making trades that are inline with the tendency.

The simple reason for this is considering when trading with the trend you are trading with the obvious direction that price is currently moving. Whilst that does non ensure that price will go on moving in the same direction, it does increase your trades odds of existence a winner.

The other reason is because trends can last for long periods of time. Unlike other markets such equally ranging markets where price is chopping upward and down, a trend can make an extended move in one direction for a long menstruation of time. This gives yous the chance to employ a smaller terminate loss and make far bigger winning trades.

NOTE:

You tin download your free tendency trading strategies PDF guide below.

**Free PDF Guide:**

Become Your Tendency Trading Strategies PDF Trading Guide

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**Does Trend Trading Work?**

The simple reply to this question is yes. Tendency trading is ane of the most popular ways to merchandise all different kinds of markets from Forex through to stocks.

The reason why trend trading is then pop is because once yous know how to exercise information technology correctly, then y’all can discover trend trades in many different markets and on all fourth dimension frames.

This allows you to detect many different trading opportunities that have the power to become very profitable trades.

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**What is a Trend Trader?**

A trend trader is only a trader who is looking to find the obvious trend either higher or lower and make large profits by riding the adjacent wave in the marketplace.

Whilst in that location are many different tendency trading strategies you lot can utilise, in this lesson I am going to teach yous a very uncomplicated strategy you lot can use to find trades in many different markets and time frames.

The most common mistake tendency traders make is looking for trends in all markets and time frames. This is a huge tip: price spends far, far more time moving in range and sideways patterns than it does moving in clear trends.

If yous are looking for trends in every marketplace, then you will be making tendency trades when there simply is no trend. Trends should be easy to spot. Y’all should exist able to flick to your chart and speedily say ‘cost is clearly trending higher or lower’.

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**What is a Trend Trading Strategy?**

Because trend trading is then popular and can be used in many different markets, there are many strategies that can be used. However, a lot of these strategies are overly complicated and don’t actually help you detect or make trend trades.

Every bit nosotros get through in most of our lessons, the all-time strategies are nearly always the simplest.

This is also true for trend trading strategies. Every bit nosotros go through below; once you have constitute a articulate-cut trend you don’t want to be overcomplicating things. Yous just demand to find high probability trades and and so ride that next wave that price makes higher or lower.

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**Unproblematic Trend Following Strategy**

The easiest style to find and identify a clear-cut trend is using cost activeness.

When you lot move to your cost activity chart you lot should exist able to quickly see if cost is making an obvious motion higher or lower. If y’all are struggling to discover a clear move higher or lower, so the chances are in that location is no trend.

The other easy way to find trends and also when new trends are starting is looking at the swing highs and lows.

A trend volition form a series of swing points. Run into the example chart below. Price is in a trend lower. With this tendency we have a series of lower highs and as well lower lows. This is like a step ladder with cost ‘stepping’ lower.

**Of import point:**

Even in the strongest of trends cost will always make these swing points and rotations. These swing points and pullbacks are also often the all-time times to find high probability trades.

One time y’all have found a clear-cut tendency, and so information technology becomes time to detect a trade entry point.

There are many different ways you lot can do this, merely using the swing points and back up and resistance levels offer some of the highest probability entries.

Come across the example below. Price action is get-go in a trend college. When we see this we begin looking for a long trade. When price makes a rotation and swing lower into the support area we can then look to get long. We could take a long trade equally presently as price hits this back up area or we could increment our trades odds even further.

A way of increasing our odds would be to employ candlestick patterns to ostend the merchandise entry. In this example below nosotros take found the trend higher, toll has moved back to the support then information technology forms a big bullish engulfing bar that would confirm our long entry.

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**The Best Trend Trading Indicators**

I of the virtually popular indicators used to find and make trend trades is the moving boilerplate.

The best mode to use the moving average when trend trading is using two moving averages and using the crossover. In the example below two exponential moving averages (EMA’s) are used. The first is the 50 period EMA and the second is the 21 catamenia EMA.

When we run across the faster moving 21 period EMA cross to a higher place the slower moving 50 period EMA we can see the trend changing to an uptrend.

The fundamental with the crossover is looking for the two moving averages to widen. When the moving averages start to widen it shows us that the trend is very strong.

Read more about trend trading indicators hither.

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**Lastly**

Trend trading is hands down one of the simplest and besides most pop trading strategies.

Yous tin can utilise trend trading in all of your favorite market place types and on all time frames. It allows you to utilise smaller end losses and gives you the chance to make very large running winning trades.

There are many different trend trading strategies you can use. The best matter y’all can practise is get a free set of demo trading charts and start practicing to see what is your favorite.

**Source: https://learnpriceaction.com/trend-trading-strategies-free-pdf/**