Recently, I’ve been looking at trading forums and found that many people’s understanding of trend-following trading still stays at the old routine of "buy low, sell high." Actually, the core idea of trend-following trading is completely different; it’s not about predicting the bottom, but about waiting until the trend has already formed before jumping in.

It sounds simple, but there are two pitfalls in practice. The first pitfall is judging the trend direction. The market indicators are diverse—moving averages, trend lines, support and resistance—each can tell a different story. But the key is not to rely on just one indicator; you need to synthesize multiple signals. My experience is to use daily charts to determine the overall direction, then use hourly charts to find specific entry points. Also, always be alert for false breakouts, as the market can sometimes deceive you.

The second pitfall is even easier to fall into. Many beginners rush to jump at the start of a trend, but end up entering too early and getting trapped. Trend followers simply can’t catch the very beginning of a trend—that’s defined by the market itself. So patience becomes a must; you need to wait for genuine signals before acting.

Regarding specific judgment methods, I think chart patterns are the most intuitive. For example, when you see rectangle consolidations or flag patterns, they usually indicate that the trend will continue or reverse. During sideways ranges, it’s best not to act recklessly; prices just oscillate up and down. Waiting for a breakout above support or resistance lines is the right timing for trend-following. I’ve seen many people get shaken out in such ranges.

Moving averages are also a classic tool, but very useful. When the price is above the moving average, it indicates an uptrend; below it, a downtrend. Some traders use two moving averages to form a channel; when the price returns to the channel, wait for it to bounce out before entering. I’ve used this method, and the success rate is pretty good.

Trendline bounces are another approach. Connect two lows in an uptrend or two highs in a downtrend; each time the price returns to this line, it’s a potential entry opportunity. Interestingly, you can apply this method across different timeframes—use long-term charts to see the big trend, and short-term charts to find precise entry points.

There’s also the pivot point method, which is based on mathematical calculations from the previous day’s open, high, low, and close. When the price stays above the pivot point and keeps making new highs, it’s a typical trend-following environment. Once the pivot point starts to turn downward, be alert for a possible trend reversal.

Honestly, trend-following trading sounds simple, but in reality, it tests your discipline and patience. It’s not about guessing where the market will go, but about following what the market is already doing. Many failures come from poor exit strategies—people can hold during the entry but panic and mess up when it’s time to exit. I recommend everyone carefully review their exit rules, as this is often where the greatest improvement can be made. The goal of trend-following isn’t to catch the bottom or top, but to seize the most profitable middle part of the trend. Achieving this already makes you a winner.