| There is no one-size-fits-all approach to trend trading. In fact, there are several strategies employed by trend traders when they are seeking to identify ideal entry and exit points. 
What is Trend Trading?
Trend trading is a momentum-based strategy where traders buy assets that are rising in price and sell or avoid those that are falling. The core belief is that a stock will continue its current trend until it shows signs of reversal, such as failing to reach new highs. Unlike other traders, trend traders do not attempt to predict future price levels; instead, they identify and capitalize on emerging trends and exit when these trends reverse. This approach relies strictly on a rules-based system and signals from price and volume data on stock charts, disregarding news, market predictions, or personal emotions. 4 Trend Trading StrategiesHere are four trend trading strategies we have found that work well.
1. Moving Average Strategies One trend trading strategy involves entering a stock when a short-term moving average crosses above a longer moving average and exiting when the short-term moving average crosses back below the longer moving average.
Others enter a stock when a stock’s price rises above a particular moving average (especially on stronger than normal volume).
Most trend traders use a combination of moving average strategies and often require a stock’s price to be trading above or below a certain moving average prior to entry.
Moving averages are also commonly used as key areas of support and resistance. VIDEO COURSE: Moving Averages 101
2. Technical Indicators
In addition to price and volume and moving averages, most trend traders use some combination of other technical indicators, such as the K-Channel, CCI and various Stochastic indicators, to time their entries and exits.
Technical indicators come in many forms and are ultimately used by trend traders to simplify price and volume data. There are currently thousands of technical indicators available and new ones being created all the time. It would be burdensome to use this many, so it’s best to choose a few that work for you.
Some indicators track a stock’s momentum while others help the trend trader identify when a stock is oversold, which could serve as a buy signal, or when it is overbought, which would indicate it is time to sell.Â
Our Profit Trakker trend trading system is based upon similar technical indicators. VIDEO: Technical Analysis vs Fundamental Analysis
3. Chart Patterns
Another powerful method for identifying new buy and sell opportunities comes in the form of recognizable patterns that appear on the stock’s price chart.
While there are literally hundreds of chart patterns that traders can use, most of them have proven to be unreliable.
Only a few chart patterns actually have a high accuracy rate, which tend to be the ones most trend traders come to rely on. A few I personally like include the cup and handle pattern as well as ascending, descending, and symmetrical triangle patterns. VIDEO: 5 Profitable Chart Patterns Every Trader Should Know 
4. Trendline Analysis
One of the most common strategies employed by trend traders is the use of support and resistance lines that can be visualized or drawn on a stock chart.
Bullish traders use areas of support as potential entry points or for placing stop losses.
Meanwhile, bearish traders use areas of resistance as potential entry points and areas of support for stop losses. The best trend traders use a combination of some or all of the above strategies to increase their probability of making money in the financial markets. You can learn much more about how trend trading works in our Beginner’s Guide to Trend Trading here. PODCAST: A Beginner’s Guide To Trend Trading | 
