#ArbitrageTradingStrategy What is trend trading?

Trend trading is a strategy that involves capturing gains by looking at an asset's momentum when it’s moving in one specific direction, whether it’s up, down or sideways.

You can think of trend trading as taking the path of least resistance – if the market is rising, you’d take a long position and if it’s falling, you’d go short.

It helps to split trends up into primary and secondary movements. A primary trend describes the long-term, overarching movement. But then you have secondary trends, which are shorter-term fluctuations.

So, although some trend traders will take a broader position, you can also be a swing trader in a trending market – speculating on the smaller peaks and troughs.