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Definition of 'Trend Trading'
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).
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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.
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Make more educated trading decisions by identifying major turning points.
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Charles Dow relied solely on closing prices to confirm trend signals.
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Acquaint yourself with an indicator that played a role in the early development of technical analysis.
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Learn a strategy with clear entry and exit levels that will get you into a trend at the right time.
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Certain markets are especially well-suited to the use of trading systems.
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The success or failure of your long- and short-term investing depends on recognizing the direction of the market.
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In FX, it's not the price environment that decides this for you. Learn the differences to see which you prefer.
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Determine your own trading style, and the versatile currency market will accommodate it.
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