"In finance, trend following is an investment strategy that tried to take advantage of long-term moves that seem to play out in various markets. Traders who subscribe to a trend following strategy do not aim to forecast or predict specific price levels; they simply jump on the trend and ride it."
This is a very informal interpretation, but it serves the purpose. What we attempt to do is to participate in long-term moves without predicting, we "simply jump and ride".
This is a very informal interpretation, but it serves the purpose. What we attempt to do is to participate in long-term moves without predicting, we "simply jump and ride".
To illustrate that it is possible, here is a link to one of the most famous study on trend following by Col Wilcox and Eric Crittenden that they titled Does Trend Folowing Work on Stocks?
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