Trend trading is a trading approach that offers the potential to make larger profits by taking advantage of large market movements. There are two main concerns associated with trend trading; either the market is trending up (bull trend) or trending down (bear trend). In order for trend traders to profit, it is important to correctly identify the trend before a trade is made.
When it comes to trend trading, once a trade is placed, the trend trader will usually stay in the trade until it appears that the overall trend has changed.
Trends occur on different time frames and can be seen on various time frame charts. A trend trader, being more a long term trader where trades typically last a few weeks or more, will likely determine the trend from analyzing the daily time frame chart or larger. Minute charts can be used for fine-tuning entries, they will definitely … Read More