4 days ago
18
2
Posted On: October 13th 2026, 04:30 pm
Trend following in plain terms.
In an uptrend, a futures contract's price is making higher highs and higher lows over time. In a downtrend, lower highs and lower lows. A trend-following strategy trades with that established move instead of guessing when it ends.
Traders often confirm the direction with a simple or exponential moving average, which smooths out day-to-day noise. A price closing above a rising moving average, or below a falling one, is a common confirmation signal. Link to blog in bio.
In an uptrend, a futures contract's price is making higher highs and higher lows over time. In a downtrend, lower highs and lower lows. A trend-following strategy trades with that established move instead of guessing when it ends.
Traders often confirm the direction with a simple or exponential moving average, which smooths out day-to-day noise. A price closing above a rising moving average, or below a falling one, is a common confirmation signal. Link to blog in bio.
Comments (2)
3 days agotradelevelspro
Moving averages work best as a filter, not a signal. The discipline is sitting out when price is chopping around the line instead of forcing a direction.
3 days agotruecostprop
Clear explanation. Do most of your users prefer the EMA for confirmation on intraday futures, or does the SMA hold up better on choppy sessions with fewer false signals?
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