Trend Strategy

Trend Strategy

Sometimes referred to the Bullish/Bearish Strategy, the Trend Strategy involves reviewing charts for the asset you want to trade and determining if it has an upward, downward or changeable trend. This is a basic strategy and suitable for novice traders and often used by expert traders.

 Up Trend

 

Down Trend

Changeable Trend

If the asset has an upward trend place a CALL, if the asset has a downward trend place a PUT and if it has a changeable trend it is best avoided as there is no indication as to which way the asset is likely to move. The Trend Strategy is that simple.

If the trend is flat, that is no significant upward or downward movement, the trader may decide to use the more advanced NO TOUCH option method to take advantage of the fact that prices of the asset are trading within a narrow range.