The trend following or trend trading method involves buying an item when its price trend is rising and selling it when it is falling, with the expectation that the price movement will continue. To generate a trade signal (forex signals), you can use the current market price computation, moving averages, and channel breakouts. As opposed to predicting or foreseeing exact price levels, traders using this method simply ride the trend. Since trend followers use a variety of methods and time spans to detect trends, the group as a whole isn't necessarily closely linked. The primary trading method of commodity trading advisors (CTAs) is trend following. The trend following CTAs and the overall CTA index had a strong correlation (r=.97) between 2000 and 2009, according to Galen Burghardt's study.

Fx trend traders are individuals who make a living by following the fluctuations in the currency markets. They are able to identify weak trends in the market that are about to turn into trends that are likely to last for an extended period of time, or until they reverse themselves. These traders then capitalize on these trends by placing their trades accordingly.