Trading glossaryReviewed 16 July 2026
Definition
Trend trading is a strategy that seeks participation in sustained directional movement while defining evidence for continuation, invalidation, and exit.
In market context
A process may use price structure, moving averages, breakouts, pullbacks, or trend-strength measures to describe direction and timing. Signals lag, ranges create whipsaws, and late entry can leave little potential reward relative to the stop distance. The strategy therefore needs consistent timeframe rules, position sizing, event awareness, and a planned response when the observed trend weakens or reverses under pressure.
Source
Use the primary source for fuller regulatory or market context.