This is a straight line drawn touching low prices while prices move upwards. The more points that the line touches, the more reliable is the trend. Note it is important in trend following to make a quick exit and keep your losses small as soon as the trend goes against you. You never miss a major move in the equity. A profitable trade tends to show a large profit.
Trend following is simple and easily understood.
This is generally suitable to investors with a relatively long-term frame of mind. You must be able to determine the difference between a major profitable trend and a short-lived trend. Using Moving Averages. This approach is simply buying as a stock moves above a moving average and selling as it moves below that moving average. A relative conservative approach could use a 200-day moving average.