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Trend Trading

What Does Trend Trading Mean?

A trading strategy that attempts to capture gains through the analysis of an

asset's momentum in a particular direction. The trend trader enters into a long

position when a stock is trending upward (successively higher highs).

Conversely, a short position is taken when the stock is in a down trend

(successively lower highs).

Investopedia explains Trend Trading

This strategy assumes that the present direction of the stock will continue

into the future. It can be used by short-, intermediate- or long-term traders.

Regardless of their chosen time frame, traders will remain in their position

until they believe the trend has reversed - but reversal may occur at different

times for each time frame.