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The single most important concept in trading. Trend is the persistent directional movement of price over time - and your job is to identify it, respect it, and trade with it.
There are several methods to identify trend direction. Use multiple methods for confirmation - when they agree, you have higher confidence.
Higher highs and higher lows = uptrend. The most reliable method.
Price above MA = bullish. Fast MA above slow MA = bullish.
Connect swing highs (downtrend) or lows (uptrend). Breaks signal changes.
ADX above 25 = trending. Below 20 = ranging. Doesn't show direction.
The trend is your edge. In an uptrend, even a mediocre long setup has the wind at its back. Against the trend, even a perfect setup faces headwinds. Always know the trend before choosing your direction.
The Academy teaches this concept through structured lessons with real chart examples.
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