How do I know the trend continues?

You can't be sure; trend traders accept riding along until the high-low structure clearly reverses.

Is entering late a problem?

Trend following usually accepts missing the exact bottom or top, in exchange for riding the body of the trend.

Trend Trading | 2AiTrading

What trend trading is

Trend trading goes with the dominant trend, seeking entries in the direction price is already moving rather than against it. The familiar phrase capturing this is to ride the trend until it truly changes.

Core idea and when it fits

This method suits a clearly trending market. Trend traders usually look for entries when price pulls back within a running trend, then continue in the old direction. The strength is moving with the dominant force; the weakness is underperforming in a sideways market, and possibly entering late at a trend's start.

Common mistakes

Applying trend tactics to a sideways market.
Trying to guess tops and bottoms instead of going with the existing trend.
Exiting too early out of fear, cutting off most of the benefit of letting profit run.

FAQ

How do I know the trend continues? You can't be sure; trend traders accept riding along until the high-low structure clearly reverses.
Is entering late a problem? Trend following usually accepts missing the exact bottom or top, in exchange for riding the body of the trend.

Checklist

☐ Does the market currently have a clear trend to follow?
☐ Am I going with the trend or trying to guess the reversal?
☐ Am I letting profit run with the trend rather than exiting out of fear?