#TrendTradingStrategy The wisdom of Wall Street reminds us, through its various maxims, that we must stay on the right side of the market: the trend is your friend, don't be defeated by the tape and buy when the price drops. All these sayings are based on the idea that when a market is trending —that is, moving in a general direction— your positions should follow the market trend, not go against it.

It's a simple concept, but in the real world of trading, it is not always easy to put into practice. How do you detect the start of a trend? How do you know when it is ending? What happens if a trend breakout fails or if a drop turns into a total bear market? These questions have inspired a wide range of strategies that, together, fall under the broader approach known as trend following.