Trend Trading

Trend trading is a forex and CFD strategy to capture profits through momentum analysis. This allows for investments in both the up and down market. The theory behind trend trading uses technical indicators such as moving averages to determine the overall direction. This type of trade generally does not wait for specific entry points but participates during the trend. Trend trading still considers the market price, volume, and risk-reward ratios. Further technical analysis can help determine minor corrections along with the trend. It is similar to swing trading, but positions are generally held for a more extended period. You must be comfortable sitting through any pullbacks and possibly periods of little activity or sideways movement. The first step in mastering this strategy is understanding a trend and the rules governing patterns. Learning to draw an adequately validated trendline can help your trading.

Barry Norman

The Director of Investors Trading Academy as well as a published author and educator. Barry brings with him over 35 years of financial market knowledge and experience. He holds an MBA in Finance and Economics from UCLA and an undergraduate degree in Economics from the University of Maryland. Barry was awarded the title of “Best Education in Europe” by Global Banking & Finance. Barry is also a presenter for the MoneyShow and many well-known news sources.