Fundamentals of trend trading

It will be easier to become a successful trend trader if you learn the basics of how trend trading works. We have established that trend trading is based on knowledge of general market trends. However, what trend styles do traders usually use?

Not all trend traders are commodity traders, but commodity trends are more straightforward to identify these trends. Investors who detect trends expect them to persist when they decide to buy these stocks. For example, a trader would notice a trend that formed six months ago and was established to track price movements. As soon as a trader noticed an uptrend in an instrument, he could buy it in the hope that the stock would continue this trend. Since the beginning of the year, every stock has experienced a sharp upward jump, so this would be a strong move.

To find stocks that can demonstrate an uptrend within six or 12 months, you need a reliable trend detection system. It is clear that excellent trend traders are the elite in determining trends in various industries. That's where a set of indicators helps that will make you feel confident in your trend strategy.

On the other hand, trend trading is slightly different in the foreign exchange market, as it is unstable compared to other markets - the main driving forces in the foreign exchange market operate over a longer time frame. Therefore, in order to understand them, traders must go beyond the higher timeframe.

How to determine the market trend?
Identifying trends is very important for a trend-based trading approach, because all trading activity depends on a trading decision. Any failure to correctly identify the trend will affect the entire trading activity. There are several tools that we can use to determine the market trend.:

Moving averages are one of the most important indicators for trend traders. This helps traders eliminate fluctuations by focusing on the average, representing the average price of the last number of candles. For example, 20 moving averages on a daily timeframe represent the average price for the previous 20 days. Therefore, if the price remains below 20 MA, it means that sellers have been dominating the market for the past two days.
The MACD is another tool that helps signal when traders should buy or sell a currency pair using two moving averages. It ranges from zero to hundreds, and traders use different points at these levels to predict the trend.
The RSI is moving within the zone from 0 to 100. A higher level means that the price is under strong buying pressure. Thus, if the RSI rises above 50, it may indicate that the price is overbought and falling. On the other hand, a lower RSI means that the price is oversold and an upward trend is planned. After successfully registering with a 1xbet promo code and receiving your bonus, the journey doesn't end. 1xBet has a comprehensive loyalty program called "1xPoints" where you earn points for every real-money bet placed on sports or casino games. These points can later be exchanged for free bets or bonus funds. This means that even after you have completed the welcome bonus wagering requirements, your activity continues to be rewarded, creating a cycle of value that extends far beyond your initial promotional offer.