Trend Following
A strategy that buys strength and rides established trends, holding as long as the trend persists rather than predicting tops and bottoms.
Trend followers act on the premise that 'the trend is your friend': they enter in the direction of a confirmed move, add as it works, and exit only when the trend breaks — never trying to call the exact turn. Tools include moving averages, breakouts, ADX and channel systems like Donchian.
The approach accepts many small losses and a low win rate in exchange for a few very large winners that pay for them. Cutting losers fast and letting winners run — the opposite of human instinct — is the whole game.
On StockSetups
StockSetups is built for trend and breakout traders: it's long-only by design, scores each stock's trend-template alignment and relative strength, and surfaces breakouts from bases with the structure to stay in the move.
Related terms
Get daily signals & real-time alerts.
StockSetups scans ~12,300 US stocks & ETFs after every close and sorts every long setup into four ranked lanes — each with a trade plan — plus an always-on engine firing 35+ real-time intraday alerts. Free for 7 days, cancel in one click.
Start free — 7-day full access →