The trend has three directions.

The three trends we are talking about, namely, upward trend, downward trend and horizontal extension, are well founded. Many people are used to thinking that there are only two trends in the market, either rising or falling. But in fact, the market has three moving directions-upward, downward and horizontal extension.

Successful trend trading is profitable because it captures the big market. Its advantages include more time to decide when to go in and out, no need to stare at the computer all day, and a sense of satisfaction when grasping the main market; Its disadvantage is that the stop loss point is set far from the current price. Once triggered, the loss is relatively large, and at the same time, we have to endure the pain when the main force retreats sharply. Second, it must endure long-term market stagnation or consolidation.