11 trading tips are a savior for trend traders
Trend trading is one of the methods chosen by many traders to trade, one of the reasons is because it is a safe way of trading and can help traders maximize profits. It is important for traders to understand analysis and understand trends in order to follow. But easy to say, difficult to do again.
A lot of traders participate in trading, the trend has come to an end, or also trade in the trend but catch the price retrieval at the wrong time, or enter the order too early, ... When you start trading. There are also many problems traders need to grasp if they want to trade the trend effectively.
Here is a quick summary of trading principles and tips for trend traders.
Grasp the overall trend in the timeframe you trade and don't forget to assess whether the current trend shows signs of exhaustion or reversal.
Only trade when the trend has strong or stable momentum. Avoid trading when the trend is weak and slow to touch. Such trends are highly likely to be reversed.
If the trendline has a slope of over 70 degrees, we should limit trend trading. Since the trend is having momentum or fast moving speed, there is a high chance that prices will correct or correct deeply, or even reverse.
Identifying trading signals at key resistance supports in trend will have higher probabilities.
The strong support and resistance levels in the trend should be the confluence of many factors.
The trend is likely to be broken when there are many strong reversal signals appearing such as trend reversal structure, weak momentum, the trendline is broken, strong resistance support in the broken trend.
Exit at key resistance supports on a large timeframe or at confluence levels on the timeframe you trade.
Do not trade when there is no signal at the support resistance or signal at mid-trend price range. It is better to stay out of the market and wait for another opportunity than to enter the trade under those circumstances.
Don't trade when trend reversal momentum strengthens while trend reversal momentum weakens.
For a trend that is weakening or about to come to an end, you'd better wait for the price action to confirm. If the trend is not really over, you should wait for the momentum to confirm that the trend is still strong, then join the trade. If the trend is over, you also have to wait for confirmation of the momentum for a new trend, and then engage in reverse trade.
Move the stop loss along the trend to maximize profits. Stop loss moves can be used according to the trade setup, resistance support or push-pull, as long as the trend momentum remains in favor.
Above are 11 trend trading tips that traders can refer to and apply in trading. Hope you are useful!