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Trend Following

What is Trend Following?

Trend following is a trading strategy that aims to capitalize on the momentum of an asset's price movement. It is based on the idea that prices tend to move in a persistent direction for a certain period. Traders using this strategy seek to enter the market when a trend is established and exit when the trend shows signs of reversing.

Key Elements of Trend Following

  • 📈 **Trend Identification**: The first step is to identify a trend. This can be done using various indicators such as moving averages, trend lines, and momentum indicators.
  • **Entry Points**: Traders enter a position when they believe a trend is established. This could be after a breakout from a previous high or low.
  • **Exit Points**: Exiting a trade is as crucial as entering. Traders often use trailing stops, support and resistance levels, or opposite signals to exit.
  • **Risk Management**: Effective risk management is essential. This includes setting stop-loss orders and managing position sizes to minimize potential losses.

Indicators Used in Trend Following

  • **Moving Averages**: Simple Moving Average (SMA) and Exponential Moving Average (EMA) are commonly used to smooth out price data and identify the direction of the trend.
  • **Directional Movement Index (DMI)**: Measures the strength and direction of a trend, including the Average Directional Index (ADX) which shows the overall strength.
  • **Parabolic SAR**: Provides potential reversal points in the trend by placing dots above or below the price.
  • **Relative Strength Index (RSI)**: Indicates overbought or oversold conditions, helping to gauge the strength of the trend.
  • **MACD (Moving Average Convergence Divergence)**: Shows the relationship between two moving averages to identify momentum and trend direction.
  • **Ichimoku Kinko Hyo**: Offers a comprehensive view of trend direction, support, and resistance levels.

Popular Trend Following Strategies

  • **Turtle Trading**: Based on breakouts of historical highs and lows. Uses a combination of 20-day and 55-day breakouts for entries and exits.
  • **Trend Screener**: Utilizes multiple indicators like trend lines, reversal dots, and momentum tools to identify and confirm trends across various timeframes and assets.
  • **Smart Trend Trading System**: Combines indicators like Trend Breakout Catcher, Smart Trailing Stop, and Smart Cloud to provide a holistic view of market dynamics.

Advantages and Disadvantages

  • **Advantages**:
    • Potential for large profits during strong trends.
    • Can be applied to various markets including Forex, stocks, and commodities.
    • Reduces emotional decision-making by following predefined rules.
  • **Disadvantages**:
    • Lower win rate as trends can be infrequent.
    • Requires patience and discipline to follow the strategy.
    • Can result in significant drawdowns during sideways markets.

Real-World Examples

  • **TrendDECODER**: Uses tools like Projective TrendLine, RealTime TrendLine, and FiboLevels to identify and follow trends. It provides early signals and dynamic support/resistance levels.
  • **BDA Trend Finder**: Alerts traders to developing trends by combining higher timeframe data with current price movements. Suitable for various markets and timeframes.
  • **Swing Continuation**: Focuses on swing highs and lows to identify low-risk, high-reward patterns. Uses a currency meter to filter trades based on currency strength.

Conclusion

Trend following is a robust strategy that can yield significant returns if executed correctly. By leveraging various indicators and adhering to strict risk management principles, traders can navigate the complexities of the market and capitalize on prevailing trends. 🚀

Delve into the world of Second To NoneFX Scalper! With claims of high accuracy and a price that won’t break the bank, it might sound appealing at first. But wait! Where are the reviews? Let’s dissect this, shall we? It could be a hidden gem or just another fool's gold waiting ...

Release Date: 01/04/2021

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Release Date: 27/03/2024

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Release Date: 21/03/2021

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Release Date: 31/01/2024

Ah, the Step By Step EA – always following the trend like a loyal dog chasing its owner in a park. With its promising features and robust design, it claims to be the answer to every trader’s dreams. When first glancing at its functionalities, one might be tempted to think tha ...

Release Date: 03/04/2021

Welcome to the rollercoaster ride of Forex trading! Today, we’re unravelling the mystery behind 'Super Trend by iBossTrader MT5.' This might just be the powerful indicator you've been dreaming of—or a mirage in the desert of trend indicators. Let’s dive deeper, shall we? Wh ...

Release Date: 28/03/2024

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Release Date: 29/11/2020

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Release Date: 24/05/2024

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Release Date: 25/08/2024

Welcome to the world of TrendLinePro2, where promises of automation and accuracy fly high but not always land gracefully. Are you ready to embark on a journey that could either revolutionize your trading or serve as yet another tale of unmet expectations? Buckle up, because this ...

Release Date: 25/08/2024

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Release Date: 25/05/2024

Are you ready to peel back the layers of the mysterious Gamma Bands? Dive in as we dissect this trend indicator — is it merely marketing fluff, or does it hold valuable trading insights? With a blend of critical user feedback and technical exploration, this article will leave y ...

Release Date: 24/02/2019

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Release Date: 15/02/2019

Welcome to the wild world of 'Exclusive Trend'! A trend indicator that promises minimum false signals and a perfect fit for scalping—at least, that’s what they say. Join us as we peel back the layers of this intriguing tool, questioning whether its five-star rating is genuine ...

Release Date: 14/03/2017

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Release Date: 26/08/2024

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Release Date: 20/04/2016

ZO Trend

Easy Rating: 0/0

MQL Rating: 4.2/5

ZO Trend might just sound like your next favorite cocktail, but no worries, it's not a drink — it's a trading indicator that claims to help you find your way through the Forex jungle. Developed by Trung Le Hoang, this indicator aims to put the 'trend' back in your trading strat ...

Release Date: 29/04/2020

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Release Date: 26/05/2024

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Release Date: 26/03/2024

Is the US500 Trend Scalper a hidden gem or just another run-of-the-mill trading robot? This review delves deep into its performance and underlying strategies to reveal the truth. With a price tag of $247, it's crucial to assess whether the investment is worth it or if it's simply ...

Release Date: 27/08/2024

Are you tired of staring blankly at numerous charts while trading? The MACD Scanner promises to be your magical all-seeing eye, or perhaps just another overly optimistic tool that claims to alert you about the elusive cross of MACD lines. What can go wrong, right? Let’s peel ba ...

Release Date: 06/02/2019

Welcome to the world of Trend Matrix EA MT5, where every trading signal shines like a diamond, and the only thing better than being right is having your robot do it for you! But wait a minute, is it truly as glorious as they claim? Join us as we tear apart the glittering facade a ...

Release Date: 27/06/2024

Ah, the wondrous world of forex trading! A realm where fortunes can be made or lost in the blink of an eye—just like your last cup of coffee, depending on how much caffeine you’ve had, right? Enter the Trendline Wizard, an indicator so shiny that it practically casts a shadow ...

Release Date: 28/08/2024

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Release Date: 28/08/2024

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Release Date: 09/11/2020

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Release Date: 28/07/2024

Ever wondered what makes the forex market tick or how some traders seem to have it all figured out? The H4 GBPUSD Trend Scalper doesn't come with a crystal ball, but it sure tries to mimic one! A scalping strategy designed to seize on trends, it promises profit while barely whisp ...

Release Date: 06/07/2016

Welcome to the eccentric and thrilling world of the Waves Follower! This indicator promises to detect trends faster than a caffeinated squirrel, but does it deliver? Spoiler alert: Every silver lining has its cloud. Let’s dive into this mixed bag of user reviews, technical prow ...

Release Date: 23/12/2021

Brace yourself, traders! We’re diving deep into the enigma that is the MultiSignal Trend EA. With zero user reviews and a bold price tag of $150, you might be wondering if this is a trading treasure or an extravagant dud. Let’s sift through the hype, dissect the features, and ...

Release Date: 29/06/2024

Welcome to the world of Omega Trend EA—a wondrously automated trading system that swears it can spot trends better than your neighbor's cat. While the developer claims the system can simplify your Forex trading life, we dissect its real capabilities with a sharp, skeptical eye. ...

Release Date: 13/10/2020

Welcome to the thrilling review of Trend Stop MT5, where we explore whether this trading system is a hidden treasure or just another empty promise in the Forex market. Let's unveil the mysteries hidden behind its flashy description while keeping our skepticism intact. This system ...

Release Date: 30/07/2024

Harmonic Hybrid Pro: a dazzling new tool in the busy realm of Forex trading. But wait—before we all rush to download this shimmering gem for just $35, let's take a closer look at the fine print. It promises to align with the current trend and deliver a neat maximum of two order ...

Release Date: 30/04/2024

Welcome to the wacky world of Forex trading, where money can disappear faster than your lunch money when someone steals it at recess. Today, let’s dive into the intriguing Algobox Trend Trading Gbpusd H1 MT5 system. Promising stable trading without the murky waters of martingal ...

Release Date: 30/07/2024

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Release Date: 05/07/2021

If you thought you'd seen all the ways Fibonacci could ruin your trading experience, wait until you meet 'SFT Fibo Smart Zones'! Claiming to display overbought and oversold levels using this mythical sequence, this system might just be the spark your trading strategy has been mis ...

Release Date: 05/09/2023

Ah, TrendlineBreak Alert! An indicator that promises to change your trading experience by sending you alerts right when the price decides to break out. Or, does it? With a user rating of 4 and a slew of user feedback, we can't help but feel a mix of excitement and skepticism. Let ...

Release Date: 06/02/2023

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Release Date: 06/02/2023

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Release Date: 07/12/2017

In the kaleidoscopic world of Forex trading, Super Trend EA emerges as a contestant in a relentless beauty pageant of algorithms. The promise of profit lingers like sweet perfume, but does it deliver the consummate experience, or is it simply an exercise in hope? With a free entr ...

Release Date: 04/05/2022

Leprechaun

Easy Rating: 5/1

MQL Rating: 4.36/15

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Release Date: 01/09/2020

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Release Date: 09/10/2023

Oh, the joy of trading indicators! You buy them in hopes of sipping piña coladas on a tropical beach, but half the time, you're just sipping regret. Enter BoB Candles AM, an indicator promised to revolutionize your trading experience without the oh-so-fun repainting feature! Rel ...

Release Date: 14/05/2023

Ready to peel back the layers of the Tipu Parabolic SAR Panel? Imagine a trading world where those pesky market trends are no longer hidden behind stubborn price action. With Kaleem Haider's creation in your toolkit, you might just find the Holy Grail of indicators—or at least ...

Release Date: 18/12/2015

Are you tired of trading systems that seem like rocket science? Meet the Super Trend eu, the trend-following indicator that promises to simplify your trading experience—myth or reality? Let’s dive into this so-called revolutionary tool, dissect its strategies, and see if it� ...

Release Date: 18/02/2023

Ever wondered if the SuperTrend Indicator really lives up to the hype? Spoiler alert: it's not the holy grail of trading, but it's got potential! With a solid rating and a fan base, this tool tries—sometimes successfully—to help traders catch trends. Let's dive into the good, ...

Release Date: 27/04/2018

Is the MACD Trend EA the golden child of automated trading, or just another mirage in the desert of forex? This critical overview cuts through the fluff and gets straight to what matters. Join me as we uncover the features, user experiences, and performance of this infamous EA, a ...

Release Date: 20/06/2023

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Release Date: 21/09/2023

Welcome to the evolution of trading technology with Trend Hunter, the Forex indicator that’s making waves! This tool cheerfully claims to follow trends without the typical trading turmoil. Every trader's dream, right? But let’s not hold our breath just yet. With an impressive ...

Release Date: 10/08/2015

So, you're intrigued by the AW Donchian Trend MT5—spoiler alert: it’s not a magic wand that'll make you a Forex millionaire overnight. But, if you enjoy a good rollercoaster ride where strategies thrive on volatility and dynamic calculations, then strap in! We'll critically s ...

Release Date: 15/08/2024

If you're tired of trading systems that promise you the moon and deliver little more than a headache, then brace yourself for the SuperTrend Nrp New Mtf. This fancy indicator, through a cocktail of algorithms and fuzzy logic, claims to navigate the unpredictable Forex waters. But ...

Release Date: 14/11/2020

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Release Date: 08/10/2018

Welcome to the curious case of the R 3MA Cross indicator, where three moving averages join forces, promising to deliver sweet signals like a reliable message from the Forex gods... or do they? This indicator sounds like a dream, except when it doesn't work out, it's like a blacko ...

Release Date: 24/01/2023

Curious about the Supertrend etradro? In this revealing article, we dissect this volatility-based indicator that's making waves among Forex traders. Is it the game-changer you’ve been waiting for, or just another flashy tool? Join us as we explore its inner workings, scrutinize ...

Release Date: 25/01/2023

Welcome to an electrifying world of trades and ticks! Today, we unravel the enigma known as 'Gegenpressing,' an EA claiming to shatter the conventional rules of trading. With visions of profits dancing like mirages in the desert, let's scrutinize whether this EA is a golden ticke ...

Release Date: 26/05/2023

SAAD TrendTracker

Easy Rating: 0/0

MQL Rating: 4.03/45

Are you ready to dive deep into the enigmatic world of automated trading? Discover the complexities of the SAAD TrendTracker, an EA that claims to scalper pips while managing trades with mathematical precision. Is it really a game-changer, or just another run-of-the-mill EA? Buck ...

Release Date: 11/11/2016

Dare to delve into the highs and lows of the 'Trend Catcher with Alert MT5'? This article uncovers the intricacies of this competitive trading tool, evaluating its performance through user reviews, market comparisons, and potential pitfalls. Is this the indicator that could redef ...

Release Date: 27/07/2023

The Amka Ccf trading system, developed by Vladislav Akindinov, was rolled out for free use on March 2, 2021, and has garnered a rating of 5. But is this just another shiny object in the crowded trading system market? Or does it genuinely have merit? This article dives deep into i ...

Release Date: 02/03/2021

Welcome to the world of Trend Master Chart MT5, where everything seems to be easier, or so they claim! This magical piece of software promises to turn you into a trading guru overnight — but, will it really? Here, we peel back the layers of this trend indicator to see if it liv ...

Release Date: 10/04/2024

The MA Color indicator is here to rescue you from indecisiveness in trading! With its vibrant colors indicating trend changes, it's like a mood ring for your trading charts. This free tool promises to smooth out your trading decisions, but is it really all that? Let's peel back t ...

Release Date: 24/02/2024

In the turbulent sea of Forex trading, KT Trend Wave MT5 floats to the surface as a promising tool for navigators seeking clarity amidst chaos. This powerful oscillator claims to deliver short-term price reversal insights, but does it truly cut through the noise? Join us as we un ...

Release Date: 02/04/2022