2011-07-19 12:29:39
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.