Trend & Momentum strategies
Trend and momentum strategies try to join a move that is already under way and stay in it while it lasts. They usually win less than half their trades and rely on a few large winners, which makes patience through losing streaks part of the method.
6
strategies in this family
6
animated replays
1
with published research
7
other families
- 6beginner
- Trend & MomentumTested, mixedMoving average crossover (9/21 EMA)Buy when a fast moving average crosses above a slow one, sell when it crosses back: the simplest way to follow a trend.Day trading, Swing tradingBeginner
- Trend & MomentumTested, mixedPullback to the 20 EMAIn an established trend, wait for price to dip back to the 20 EMA and buy when it turns up again.Day trading, Swing tradingBeginner
- Trend & MomentumTested, mixedTurtle breakout (Donchian channel)Buy a close above the highest high of the last 20 days, exit on a close below the lowest low of the last 10: the rules the famous Turtle traders were taught.Swing trading, Position tradingBeginner
- Trend & MomentumResearchedTime series momentum (12-month trend)Once a month, hold a market if it is higher than it was 12 months ago and step aside (or go short) if it is lower.Position tradingBeginner
- Trend & MomentumPopular, untestedSupertrend (ATR trailing stop)A line set a few ATRs away from price that flips sides when price closes through it: buy on the flip up, exit on the flip down.Day trading, Swing tradingBeginner
- Trend & MomentumPopular, untestedMACD crossover with a trend filterIn an uptrend (above the 50 EMA), buy when MACD crosses above its signal line after a pullback; exit when it crosses back.Day trading, Swing tradingBeginner