A Strong Trend. Profitable Stock Trading Strategies

A Strong Trend. Profitable Stock Trading Strategies

A Strong Trend. Profitable Stock Trading Strategies

Trading on a strong trend has been considered the best profitable forex trading strategy for working in financial markets for more than two centuries, and trend trading systems should be in the arsenal of any professional trader. Trend trading usually does not receive proper attention when training beginners in most training centers. It is because being able to catch a trend is a pledge of lucrative trading, not a method of rapid drain, and ultimately, each of us feels it on our deposit.


If you compare many proven profitable forex trading strategies with each other, it is easy to find that behind all of them there are not many basic ideas, principles. In one of the previous articles, you and I have dealt with breakdown trading systems. Today we will talk, as you have already understood, about trend strategies. We will understand the input and output techniques used, the indicators on the basis of which profitable stock trading strategies are built more widely, as well as consider examples for each group of techniques.



Market inefficiency at the heart of strategies



Any idea that later has a chance to translate into a best profitable forex trading strategy must exploit some kind of market inefficiency. There are not many of them, and yet contrary to everything, there are such inefficiency. Some are unstable and manifest from time to time. A good, though beaten, example is night scalpers. Trend strategies, as the name makes clear, use market inefficiency such as trends in their proven profitable forex trading. All of you surely know how to determine trends, because this is one of the first knowledge acquired by beginners. And we will get acquainted with various classes of trending TS and we will understand their peculiarities on real examples.


profitable stock trading strategies strong trend


Inputs and outputs for trend systems


Trend and breakdown systems are similar in many ways. For example, as for break-through systems, for trending it will be correct to have no warrant profit and have the best profitable forex trading strategy. It can be a trailer on fractals, candlelight shadows or extremes when trading at high periods, a trailer using Parabolic SAR or moving averages to work inside the day, such as on Н1, or even an ATR trailer when scalping at periods from М15 and below. The loss stop is also recommended depending on the time frame selected for operation.


Typically, the lower the period, the more noise. Which means you have to consider this noise somehow - either reduce the time in the transaction by reducing the level of desired profit, which is extremely undesirable for trend systems, or increase the size of the stop loss. For daily schedules, in most cases it will be optimal to stop loss within 2 ATR, whereas for H1 it is already 4-6 ATR. That is, the general rule here is that the more unidirectional the tool moves, the less stop is needed. Therefore, high periods for proven profitable forex trading are more preferred.


Typical indicators used for trend vehicles are, of course, sliding averages, moving average envelopes, MACD indicator, Bollinger tapes, Williams Alligator indicator, Keltner channels, Ishimoku.


Trending trading systems are the oldest type of strategy. Best profitable forex trading strategy have always existed in markets, exist now, and are unlikely to ever disappear. So the trend is one of the most sustainable and reliable market inefficiency worth using for its own purposes.


There are currently a very large number of trending trading systems, but in most cases they are all reduced to the few classes I have tried to describe in this article. And whatever happens to markets, what changes they would not undergo, trends will always be in best profitable forex trading strategy. Which means trending trading systems will be a reliable earning tool for traders for a long time.

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