Back to glossary
Trend Following
FundamentalsA strategy style that enters trades in the direction of the established trend, aiming to capture the middle portion of major price moves. Trend followers accept missing tops and bottoms in exchange for riding sustained moves.
Related Terms
Trend
The general direction of price movement.
Mean Reversion
A trading philosophy based on the idea that prices tend to return to their average over time.
Moving Average
A smoothed line that calculates the average price over a specified number of periods.
Pullback
A temporary reversal in price within a larger trend.