#TrendTradingStrategy The trend trading strategy, or trend following, consists of identifying the prevailing direction of price movement of an asset and trading accordingly. Trend traders believe that prices tend to continue moving in the same direction until there is a clear signal that the trend has changed.
In summary, the strategy is based on:
1. Identifying the trend:
Traders use technical analysis tools, such as trend lines, moving averages, and other indicators, to determine if the market is in an uptrend (prices rising) or downtrend (prices falling).
2. Entering the position:
Once the trend is identified, traders enter a position in the direction of the trend, buying if it is bullish and selling if it is bearish.
