Trend following

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    Trend followingWhat is a trend following strategy?

    Trend following is a concept and strategy in technical analysis. The core principle is to analyse the price movement rather than the fundamentals of the traded asset.

    Traders who employ this strategy do not aim to forecast or predict specific price levels. They simply jump on the trend and ride it, trying to make profits from both the ups and downs in the markets.

    The foundation of trend following is the concept of market trends. Read more about it here:

    Due to the different techniques and time frames employed, the trading activities by different groups of trend followers are not always correlated to each other.

    If you are new to trading, we recommend our forex beginner strategy, which is based on a form of trend following: