The 4 Most Common Indicators
Successful traders often rely on a fundamental principle and longstanding piece of market wisdom: “The trend is your friend.” Indeed, history shows that financial markets generally maintain consistent directional movement, in one direction or the other, over the longer term even as price exhibits randomness in shorter time frames.
Trend trading is a strategy that seeks to capitalize on an asset’s directional momentum without trying to predict precise peaks and valleys—which is exceedingly difficult. Instead, trend traders concentrate on detecting and following recognized market trends.
Below, we consider four trend-trading indicators that have proven reliable over time.
Key Takeaways
- Trend trading focuses on market direction…
