Trend trading is one of the methods many traders choose to trade, one of the reasons is because it is a safe way to trade and can help traders maximize profits. It is important for traders to understand how to analyze and grasp the trend to follow. But it's easy to say, hard to do.

A lot of traders when participating in the trade, the trend has come to an end, or they also trade with the trend but catch the price retracement at the wrong time, or enter the order too early, ... When starting to trade already I just realized that there are a lot of things traders need to know if they want to trade trends effectively.


Here is a quick summary of trading principles and tips for trend traders.

1. Capture the overall trend in the time frame you trade and don't forget to assess whether the current trend shows signs of exhaustion or reversal.

2. Only trade when the trend has strong or stable momentum. Avoid trading when the trend moves weakly and slowly. Such trends are highly likely to be reversed.

3. Trendline has a slope of over 70 degrees, we should limit trading with the trend. Because at this moment, the trend is having momentum or fast moving speed, there is a high possibility that the price will correct or correct deeply, or even reverse.

4. Identify trading signals at important support and resistance levels in the trend will have a higher probability.

5. Strong support and resistance levels in a trend should be a confluence of many factors.

6. The trend is likely to be broken when there are many strong reversal signals appearing such as counter-trend structure, weak momentum, broken trendline, strong support and resistance in the broken trend.


7. Exit at important support and resistance levels in the major timeframes or at confluences in the timeframes you trade.

8. Do not trade when there is no signal at the support resistance level or the signal appears at the price zone halfway in the trend. It is better to stay out of the market and wait for other opportunities than entering trades in those cases.

9. Don't trade when counter-trend momentum is strong while trend-following momentum is weak.

10. For a trend that is weakening or coming to an end, you'd better wait for price action to confirm. If the trend is not really over yet then you should wait for the momentum to confirm the trend is still strong, then enter the trade. If the trend has ended, you must also wait for momentum to confirm the new trend before entering a counter-trend trade.

11. Move stop loss to follow trend to maximize profit. A trailing stop loss can be used according to the trade setup, support and resistance levels, or pullback zones, as long as the trend momentum remains in favor.