Market players form rational beliefs but make mistakes. Fundamental changes are often unanticipated. Non-Trend Follower View of World Stable world. World is knowable and static. Market players generally form rational expectations.
Markets adjust quickly to new information.
Fundamentals do not change dramatically in the short run. This approach is designed to capture a substantial fraction of the total profit potential from important changes in an instrument's price. Trend followers do not seek to predict neither when the next important move will occur nor when a particular market will enter a choppy and unprofitable trading phase. This approach will contain the inevitable series of small losses and whipsaws within tolerable limits, and you should expect to be in a position to benefit from major price trends whenever they develop. All decisions necessary to implement trend following strategies are derived from the price.