How to choose a trend?

<p id="isPasted">Trend traders attempt to isolate and extract profit from trends. There are many different trend trading strategies using a variety of technical indicators:</p><p>Moving Averages: These strategies involve entering into long positions when a short-term moving average crosses above a long-term moving average, and entering short positions when a short-term moving average crosses below a long-term moving average.</p><p>Momentum Indicators: These strategies involve entering into long positions when a security is trending with strong momentum and exiting long positions when a security loses momentum. Often, the relative strength index (RSI) is used in these strategies.</p><p>Trendlines &amp; Chart Patterns: These strategies involve entering long positions when a security is trending higher and placing a stop-loss below key trendline support levels. If the stock starts to reverse, the position is exited for a profit.</p><p>Indicators can simplify price information, as well as provide trend trade signals or warn of reversals. They may be used on all time frames, and have variables that can be adjusted to suit each trader's specific preferences.</p><p>Usually, it is advisable to combine indicator strategies or come up with your own guidelines, so entry and exit criteria are clearly established for trades. Each indicator can be used in more ways than outlined. If you like an indicator, research it further, and most importantly, test it out before using it to make live trades.</p><p>Trend following is a trading system based on using trend analysis and following the recommendation produced to determine which investments to make. Often, the analysis is conducted via computer analysis and modeling of relevant data and is tied to market momentum.</p>