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Trend following is a trading strategy that involves identifying and following the direction of a market trend. Traders using this approach believe that markets move in trends and that by following these trends, they can profit from the momentum of the market. This strategy typically involves using technical analysis tools to identify trends and then entering trades in the direction of those trends. Trend following traders often use indicators like moving averages, trendlines, and momentum oscillators to confirm the strength of a trend and to determine entry and exit points for their trades. The goal of trend following is to capture the majority of a trend's movement, whether it's up or down, and to minimize losses during periods of consolidation or reversal.