Trend Trading Setup

A trend-based trading strategy is an approach used by traders to capitalize on the direction and strength of market trends. The primary objective of this strategy is to identify the beginning of a trend, trade in the direction of the trend, and exit before or as the trend reverses. Here are some key elements and methods involved in a trend-based trading strategy:

Tools Required – TRED Indicator Toolkits

Features to enable

1. Smart Entry Signals
2. Trend Analyzer Wave

For Bullish Entries

1. The first condition, the trend wave should be blue.
2. The candles should be closing above the trend wave.
3. The color of the candles should be green.

For Bearish Entries

1. The first condition, the trend wave should be red.
2. The candles should be closing below the trend wave.
3. The color of the candles should be red.

If these conditions are met, fresh bullish or bearish entries can be created.

✦ Exit Conditions

For Bullish Entries – If the candles are crossing the trend wave in the downward direction and the trend wave is turning red from blue, the bullish positions can be exited at this point.

For Bearish Entries – If the candles are crossing the trend wave in the upward direction and the trend wave is turning blue from red, the bearish positions can be exited at this point.

How to identify Trendy and Sideways market – View article

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