By Investment U Research Team Trend trading seeks to capitalize on the momentum of a security’s price, depending on its direction. It’s more than opening a long position because of an uptrend or shorting on the downtrend, though. There’s a degree of technical analysis behind trend trading that makes it scientific, instead of merely speculative. You’re not just following the trend: you’re predicting it.
What is Trend Trading?
A trend represents momentum. In simplest terms, a trend is the sentiment behind the movement of a security. If a stock price falls five days in a row, it’s on a downtrend. Whether it’s falling on bad …read more