Trend following
Trend following is an approach that seeks to participate in an established directional price movement rather than predict turning points. It commonly uses price rules or indicators to identify trends, but sideways markets and sudden reversals can produce repeated losses.
In a hypothetical market, a trader follows a rising moving average as evidence of an upward trend; a later reversal causes the position to lose value.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure