Trading With The Trend Guide
Source: Pixaby
Trading with the trend is a simple concept where you only take trades in the direction of the price trend direction on your time frame.
If the trend goes up, you would only consider long trades. A market direction that is trending down, you’d only consider short trades. These are trading positions that should encounter less push back as opposed to always picking the top or bottom of the market.
Markets not only move up and down, but also in a sideways trend that is better known as a trading range.
The key is to know how to identify the trend which we do via a trend indicator or reading price action and structure.
This post originally appeared at NetPicks.
Category: Options Trading Strategy
