#CommunityAMA Trading with trends means identifying and following the overall direction of a market — whether it’s going up (bullish), down (bearish), or sideways (range-bound) — and making trades in the direction of that trend. This is a core concept in technical analysis and is widely used by forex, stock, and crypto traders. 📈 What Is Trend Trading? “The trend is your friend.” Trend trading is based on the idea that once a trend is established, it’s more likely to continue than reverse. There are 3 types of trends: Uptrend: Higher highs and higher lows Downtrend: Lower highs and lower lows Sideways: No clear direction; price oscillates within a range 🧭 Steps to Trade with the Trend 1. Identify the Trend Use tools like: Price Action: Are highs and lows going higher or lower? Trendlines: Draw lines connecting swing highs/lows. Moving Averages: 50-day, 100-day, or 200-day Price above MA → Uptrend; Price below MA → Downtrend 📌 Tip: Use a higher time frame (like daily or weekly) to confirm the overall trend, and a lower time frame (like 1-hour or 4-hour) for entry. 2. Use Technical Indicators To confirm the trend or spot momentum: Moving Average Convergence Divergence (MACD): Confirms trend direction. Relative Strength Index (RSI): Shows overbought/oversold zones. ADX (Average Directional Index): Measures trend strength. 3. Find Entry Points Enter trades in the direction of the trend when the price pulls back: In an uptrend: Buy on dips (pullbacks to support or moving averages) In a downtrend: Sell on rallies (pullbacks to resistance) ✅ Entry triggers can include: Bullish or bearish candlestick patterns (e.g., engulfing, pin bar) Bounce off moving averages or trendlines Breakouts above