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Trend Trading

Trend Trading

The trend trading technique involves identifying momentum using technical analysis and then attempting to profit from it. The position is kept open as long as the trend continues. A trader might use this method for both up (long) and down (short) trends, utilizing technical indicators to identify when a trend has come to an end so they can close the position at the right time. The moving average and relative strength index are two of the most common indicators used in trend trading.