Trend following
A strategy that enters in the direction of the prevailing trend after confirmation, targeting continuation rather than predicting reversals. The majority of Sigmentum Long and Short signals are trend-following in nature.
How Sigmentum uses it
Trend following works on the principle that assets in motion tend to stay in motion — momentum has positive autocorrelation over medium-term horizons. The key entry discipline is waiting for confirmation: the trend must already be established (EMA alignment), momentum must be building rather than exhausting (RSI in the 55–70 zone for longs), and the entry must be near the trend rather than extended from it. Trend following requires accepting that entries feel "obvious" — because by the time the trend is confirmed, much of the initial move has already happened.
Every Sigmentum signal shows the exact values — Trend following and the other three inputs — in the AI reasoning breakdown. Free account, no credit card.
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