Key Takeaways
Trend trading involves the use of technical analysis to determine the right market momentum for profitable investments.
Trend traders don’t just rely on future forecasts or other financial research reports; instead, they join the current trend and leave when set to reverse.
Staying cautious and deciding on a convenient time frame to follow the trend and entry and exit points will make the trend following strategy effective.
The main trend trading indicators include the moving average, the relative strength index (RSI) and the average directional index (ADX).