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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. 🚀

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

So, you've wandered into the realm of Tillson TMA T3? Buckle up, because what promises to be a treasure trove of trading success can quickly turn into a head-scratching affair. Let's take a closer look at this shifty character—TMA T3—an indicator that claims to wield the powe ...

Release Date: 06/02/2023

Welcome to the world of 'Heiken Ashi Smoothed Alert'—the indicator that claims it can detect color changes better than your mood ring. Released in 2017 with a rating of 4.23, this free tool is touted to be a trader's best friend...until it's not. We're diving deep to find out i ...

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

Welcome to the magical realm of Leprechaun—where profits are said to grow on trees just like four-leaf clovers! But hold your horses! Is this fantasy too good to be true? Let’s dive into the details and separate the pot of gold from the fool's gold, shall we? Hold onto your t ...

Release Date: 01/09/2020

So, you're considering the Donchian Channel Scalping Strategy EA for your trading arsenal? Let me tell you, it's like adding a high-tech Swiss army knife to your toolkit—but it's essential to understand what you're really getting! Do you dream of effortless trading while your t ...

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

Welcome to the circus of Forex trading where trends are the main act and oscillators are the mystifying assistants! If you've ever thought about jumping into the trading arena and wanted to know whether it's more of a ‘profit paradise’ or a ‘money pit,’ this article is yo ...

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

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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

Ever felt like you’re navigating a wolf-infested forest while trading Forex? Buckle up because Black Wolf MT4 might just be your guide—or your worst nightmare! With its 'blind faith in trends' approach, this EA promises to unleash some wild trading moves. But is it truly a wo ...

Release Date: 08/12/2021

Welcome to the chaotic and unpredictable world of Forex trading! Here, traders are often at the mercy of volatile price swings that can make you feel like you're on a roller coaster ride with a blindfold. Enter the Trend Chief indicator—your potential guiding star in this vast ...

Release Date: 09/05/2023

So, you're considering 'Supertrend by KivancOzbilgic'? Nice choice! You might be thinking this is your ticket to instant riches, but let’s not kid ourselves. This indicator comes with its own quirks and moods. Is it really as effective as they say, or will it leave you more con ...

Release Date: 06/02/2023

Dive into the world of automated trading with our critical yet engaging overview of Forex Trend Hunter MT5. Are you thinking about investing your hard-earned money in this system? We dissect its features, analyze user feedback, and investigate if it's truly worth the hype or just ...

Release Date: 05/03/2023

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Release Date: 01/07/2021

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Release Date: 01/07/2021

So, Dark Sprint MT5—another tool in the never-ending quest for Forex greatness? It claims to make your trading life easier with flashy arrows and neat lines, but is that enough to tame the wild beast that is the market? Let's find out if this $49 investment is worth your hard-e ...

Release Date: 01/07/2021

In the chaotic world of Forex, where predictions often come with the confidence of a house of cards, the “Dark Breakout MT5” indicator promises not to repaint, not to lag, and boldly states that you can trust it to provide clear entry signals on breakouts. But given the compl ...

Release Date: 07/05/2021

So, you’re thinking about diving into the world of automated trading with Matrix Arrow EA MT5? Well, hunker down, because it's about to get a little bumpy! Of course, it promises the moon and the stars like every other EA out there. But hey, let's sift through the fluff and fig ...

Release Date: 26/08/2021

Are you ready to revolutionize your Forex trading approach? The 'Riders' system promises to deliver a striking blend of innovation and practicality in today's tumultuous market. Buckle up as we dissect its core principles, unveil user perspectives, and critically compare its effi ...

Release Date: 06/07/2024

Are you tired of searching for that elusive winning trading strategy? Well, look no further than 'Your Trend Friend'! With its promise of easy integration into trading platforms and features designed to notify you when things get interesting, you might think you've found gold at ...

Release Date: 07/02/2022

So, you think trading can be a straightforward ride? Enter Dark Sprint, the indicator that's both a friend and a fiend! With a trend-following strategy and the mystique of ATR, it promises clarity in chaos. But how reliable is it really? Let's slice through the fluff and find out ...

Release Date: 01/07/2021

Curious about the real power of Trend Chief? Can an indicator truly slice through the market noise, serving as your guide to profit in Forex trading? Or is it just another overhyped tool that falls short? Join us in a deep dive that promises not just answers, but a good dose of s ...

Release Date: 04/05/2023

EA Goku

Easy Rating: 3/2

MQL Rating: 5/1

Welcome to the wild world of EA Goku, where trading Forex becomes a thrilling adventure, and profits feel just within reach! But wait, is this AI-powered buddy really the future of trading, or just another overhyped digital doppelganger? Strap in, because we’re about to dissect ...

Release Date: 19/11/2023

Join me on a whimsical journey through the Forex Trend Commander, the magical indicator that promises to turn your trading woes into winning streaks. Picture this: with every new buy arrow, a trader dances joyfully to the rhythm of profit—sounds enchanting, right? Well, hold on ...

Release Date: 21/07/2023

Are you ready to dive into the world of Forex trading with a robot that claims to do all the thinking for you? Enter Trend Chief EA, the supposed 'genius' assistant that follows trends like a loyal puppy. But wait! Is this robot truly as miraculous as its reviews suggest, or is i ...

Release Date: 25/05/2023

GOLD Edge PRO

Easy Rating: 5/2

MQL Rating: 483/6

Are you ready to dive into the world of automated trading with GOLD Edge PRO? This notorious EA claims to harness the power of trend-following strategies specific to the gold market. But is it really as good as they say? Let's peel back the layers and explore the functionality, p ...

Release Date: 24/09/2022

Are you ready to be dazzled by the 'wonders' of automated trading? Let’s take a joyride through the surreal world of VR Lollipop, where profits grow (or at least they say so) and traders are promised a golden future. But will this flashy robot deliver on its promises, or is it ...

Release Date: 06/10/2022

Ah, the allure of the Forex market! One day you're up with the bulls, the next you're down with the bears. Enter the 'Dark Breakout' indicator, your new best friend in this chaotic world. Does it really offer a light at the end of the tunnel, or is it just another mirage in the d ...

Release Date: 07/05/2021

Rizzy

Easy Rating: 0/0

MQL Rating: 5/10

Ever found yourself knee-deep in a sea of trading systems, wondering if the grass is greener somewhere else? Well, let me introduce you to Rizzy—your potential golden ticket or just another mirage in the desert of forex trading? With a sparkle of sarcasm and a dash of optimism, ...

Release Date: 03/01/2024

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Release Date: 12/03/2021

TrendyFollow FX: The system that promises much but delivers a little less, or is it the Holy Grail of Forex trading? As you dive into the world of automated trading, you may find yourself wondering if TrendyFollow FX is all that it claims to be—an EA designed to bring you profi ...

Release Date: 05/05/2023

Let's face it, trading can feel like wandering in the dark sometimes. You could invest hours watching charts and still miss that golden breakout moment. Enter the Trend Line Break Signal Alert—a beacon of hope for the hopeless and the disheartened. With a sprinkle of technology ...

Release Date: 06/01/2024

Welcome to the whirlwind of Razor MT 4 trading! This fully automated system promises to take your trading style to new heights—or at least, that’s what the flashy marketing says. With Anton Kondratev at the helm, this trading robot claims to provide drawdown protection and a ...

Release Date: 20/10/2022

If you thought trading was all about following the crowd, sit tight and get ready to meet Isabelle—a trading system that's more of a dance partner than a wallflower. You bet it's popular, but can it sway your trading profits in the right direction? Let's dive into the world of ...

Release Date: 15/03/2024

Are you ready to dive into the murky waters of the DYJ Withdrawal Plan? Strap in, as we dissect this so-called revolutionary trading system, unravel its features, navigate through user sentiments, and ultimately decide if it’s worth your hard-earned cash or just another beautif ...

Release Date: 08/03/2023

Ever felt like you’re a trapped swing dancer, waltzing back and forth in the Forex dance hall without a rhythm? Welcome to Master Swing, your new trading partner, ready to guide you through the intricate steps of the markets! This system promises to show you the highs and lows ...

Release Date: 05/11/2023

Ready to dive into the world of automated trading with EA Diamond Infinity MT5? Buckle up, because this EA promises to ride the market trends like a seasoned surfer, cutting losses with the precision of a samurai. But is it all sunshine and rainbows? Let's find out! 🌈 Intro ...

Release Date: 10/01/2024

Dark Power

Easy Rating: 2.5/2

MQL Rating: 465/33

Welcome to the wild world of Forex trading, where indicators like Dark Power promise to be your guiding star. But does it really shine, or is it just another flickering light in the vast trading universe? Let's dive in and find out! Introduction to Dark Power 🌟 Dark Power ...

Release Date: 14/10/2021

If you're looking for a trading robot that promises the moon but might just give you a piece of cheese, then EA Super 8 is your go-to! Designed by Vitali Vasilenka, this aggressive trading EA claims to control every trade with a no-loss system. But does it really? Let's dive into ...

Release Date: 18/08/2021

Welcome to the thrilling world of Forex trading, where indicators like Dark Absolute Trend promise to be your guiding star. 🌟 But does it really shine that bright? Let's dive in and find out! This indicator, designed for intraday trading, claims to follow trends, utilize candl ...

Release Date: 09/03/2021