The trend is the market's direction, watching if the peaks and troughs are gradually rising, gradually falling, or moving sideways.
Bullish trend: Higher highs and higher lows, like climbing stairs step by step.
Bearish trend: Lower highs and lower lows, like descending stairs step by step.
Trend trading in three steps: First, identify the direction, then find the entry point, and finally set the exit strategy; all three are essential.
During a mid-term downtrend, catch the rebounds and wait for the price to break the short-term downtrend line before entering, but be quick to enter and exit, and set your stop-loss.
In a mid-term uptrend, when the price breaks the short-term downtrend line, it's a signal that the pullback has ended; you can scale in or buy.
After a mid-term downtrend ends, if the price breaks through the downtrend line with strong volume, that’s a signal that a mid-term uptrend may be starting, and it’s a good time to enter.
To identify a trend reversal: Look for broken trend lines, no new highs or lows, and crossing previous volatility points; if two or more of these signals appear, be cautious.
Bullish trend: Higher highs and higher lows, like climbing stairs step by step.
Bearish trend: Lower highs and lower lows, like descending stairs step by step.
Trend trading in three steps: First, identify the direction, then find the entry point, and finally set the exit strategy; all three are essential.
During a mid-term downtrend, catch the rebounds and wait for the price to break the short-term downtrend line before entering, but be quick to enter and exit, and set your stop-loss.
In a mid-term uptrend, when the price breaks the short-term downtrend line, it's a signal that the pullback has ended; you can scale in or buy.
After a mid-term downtrend ends, if the price breaks through the downtrend line with strong volume, that’s a signal that a mid-term uptrend may be starting, and it’s a good time to enter.
To identify a trend reversal: Look for broken trend lines, no new highs or lows, and crossing previous volatility points; if two or more of these signals appear, be cautious.