By placing stop-loss and take-profit orders at these levels, traders can manage risk and secure profits. The core idea behind trend trading is that prices tend to continue moving in the same direction. Traders often use technical indicators like moving averages, trend lines, and momentum oscillators to identify and confirm trends. Once a trend is confirmed, they enter trades in the direction of the trend to capitalize on the momentum and potential profits.
Is MACD the best indicator?
Moving average convergence divergence (MACD) is one of the more popular trading indicators among chart watchers but it's rarely sufficient as a standalone tool. MACD is best used with other indicators and forms of technical analysis.
The trend of an asset can be either bearish or…