It is another style of negotiation that combines with those who seek to take advantage of the price trends that, according to them, can persist for a long period of time. Such traders will likely attempt to identify deep vulnerabilities and exposures to external and domestic risks of the currency they trade, before making the decision to enter the market.
Trading on the trend can be truly effective. You can make a profit for a long period of time until the trend begins to reverse. But there is a problem with identifying the moment of reversal of the trend. You should be very attentive to any fundamental aspects that could distort your winning bet.
Example of a Merchant
George Soros, one of the most successful investors in the world, the man who broke the Bank of England, is probably the biggest trend-follower of our time. Partly because of its trend tracking strategies, exceptional intuition and good anticipation of “trend reversal” events, it has managed to become one of the 30 richest people in the world.