trend following

A way of trading that rides the main direction of price instead of guessing when it will turn.

The fuller meaning

An approach that trades in the direction of an established trend, using tools such as moving averages, breakouts and pullbacks. It works in trending markets and suffers whipsaws in ranges, so using trend-following signals in the middle of a range is a listed mistake.

trend following, also called trend-following.

Related words

asset · broker · buyers · chart · day trader · entry · filter · forecast · historical data · instrument