#TrendTradingStrategy The trend following trading strategy consists of identifying the predominant direction of an asset's price movement and operating 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 upward and selling if it is downward.
