Hello, my friend, and welcome to this post on Trend Trading Made Simple.
Trading can feel overwhelming with all the indicators, strategies, and market noise out there. But sometimes, the most effective approaches are also the simplest. That’s what this lesson is about: a straightforward trend-following strategy that anyone can learn — whether you’re brand-new to trading or already experienced.
I hope you enjoy it!
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Trend Trading Made Simple – Video
Introduction
Welcome to this lesson on trend trading. I’m going to walk you through a very simple trend-following strategy that works for both beginners and experienced traders. I personally use this method across different markets—forex, futures, stocks—you name it.
The Core Setup: Two Moving Averages
The approach is straightforward: use two moving averages. I like the 50-period simple moving average (SMA) as my main trend filter. If it’s sloping down and price stays below it, I look for short opportunities. If it’s sloping up and price is above, I look for longs. It’s one of the most commonly used moving averages, along with the 200 SMA.
Then I pair it with a shorter-term moving average. My preference is the 15-period exponential moving average (EMA), but you can use others like the 9 or 20. There’s no magic number—the point is simply to use a faster-moving average to spot pullbacks.
The Core Idea
Here’s the core idea:
- Trade in the direction of the 50 SMA.
- Only take trades as long as price pullbacks respect the shorter EMA (e.g., the 15 EMA).
- In a downtrend, you want strong moves down, followed by weak rallies that stall near the EMA. That shows sellers remain in control.
- In an uptrend, you want strong pushes higher, followed by weak dips that hold above the EMA.
What to Avoid
What you don’t want is choppy price action where the 50 SMA keeps flipping direction and price crosses above and below it constantly. That signals no clear trend, and trend trades should be avoided.
Recognizing a Healthy Trend
In a healthy trend, the sequence looks like this: strength in the trend direction, weakness in the pullback, then another strong push. Once a pullback cuts decisively through the shorter EMA and momentum shifts, that usually signals the end of the trend.
Beyond Moving Averages
Now, moving averages alone aren’t enough. You’ll also need:
- A timing (cycle) indicator – to help with precise entries.
- A momentum indicator – to confirm if there’s strength behind the moves. This lets you spot weakening trends earlier, rather than only relying on stops. Think of price action as the surface of the ocean, while momentum is the hidden current beneath it.
Bonus: The Rubber Band Trade
I also share a free resource on my timing indicator and a strategy I call the Rubber Band Trade, which is one of my favorites and works consistently when it sets up.
Final Thoughts
That’s the essence of this trend trading method: simple moving averages, confirmed with timing and momentum tools, to consistently trade in the direction of strength.
Free Offer!
I am offering one of my favorite trade strategies called the Rubber Band Trade. Absolutely free. And I want you to go and make some money. Try before you buy, or well, actually try and never buy because there’s no charge for this trade at all. And I’ll give you the setups, the exits, all the rules for it. It’s an objective rule-based method based on price pattern action that I don’t think anyone else teaches.
I’ve never seen anything else teach this particular price structure. So go get that by clicking on the green icon in the top right-hand corner of the video there, or by clicking on the green button below, and that’ll take you to a page where you can opt-in, get the video for the rubber band trade strategy, along with some other great free tutorials, one of my little mini-courses, absolutely free, courtesy of Barry Burns here at Top Dog Trading.
GET MY FREE MARKET ENTRY TIMING INDICATOR
BTW, if you’re interested in the indicator that I use personally for very precise entries and exits. I’m happy to share that with you. Just send me an email at support@topdogtrading.com, and I’ll show you how to get access to that indicator.
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FREE GIFT!
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