How to trade the 3 types of trends in a market

There are only 3 types of trends in a market, the uptrend, the sideways trend and the downtrend, in each trend there are intermediate patterns, knowing how to trade each trend and its patterns is fundamental in learning a trader, in this post I want to bring a simple note to help you on your way to master that premise.

When the trend is up all you have to do is buy, ideally at the beginning of the momentum, once you have the active trade, all you have to do is follow the price action of that trend, watch the patterns formed during the movement waiting for the change in trend to sell at a profit.

The most common mistake a trader makes is exiting the trade midway through the momentum and then going back into the trend, the risk increases because there can be reversals below your re-entry zone and as the trend moves forward the risk increases, so avoid overextending your trade.

In a bearish trend all you have to do is go short, ideally at the beginning of the contraction, once you have the trade active, all you have to do is follow the price action of that trend, watch the patterns formed during the movement waiting for the change in trend to buy at a profit.

In a sideways trend, all you have to do is buy the low range and sell the high range, in a range, the price will move multiple times between the support and resistance of that level, therefore, you can program your buy in the low range and your take profit in the high range, without stopping watching the price action, because at some point the price will choose a direction of breakout and then we will trade that new trend following the above mentioned mechanics.

Bonus tip: Never trade against the trend, one of the most serious mistakes is to take profit midway and immediately after that want to cut the move with the greed of looking for a quick profit in a reverse of the momentum, remember this: in trading money goes from greedy hands to humble hands.

I hope you find the content of this post useful and that it helps you in your learning as a trader ;)

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