Comprehending Trend Time Frames and Directions

There have been students asking in the Immediate FX Earnings chat room about the present trend for certain currency sets. In return, I reply with another concern, "According to the past 5 minutes, 5 hours, 5 days or 5 weeks?" Some traders may not know that different trends exist in various time frames. The concern of exactly what type of trend remains in place can not be separated from the time frame that a trend remains in. Trends are, after all, utilized to determine the relative instructions of prices in a market over various time periods.

There are generally three kinds of trends in terms of time measurement:
1. Primary (long-lasting),.
2. Intermediate (medium-term) and.
3. Short-term.

These are discussed in additional information below.

Main trend A primary trend lasts the longest period of time, and its life expectancy might range between 8 months and 2 years. Long-term traders who trade according to the main trend are the most worried about the fundamental photo of the currency sets that they are trading, since essential aspects will provide these traders with an idea of supply and need on a bigger scale.

2. Intermediate trend Within a primary trend, there will be counter-cyclical trends, and such rate movements form the intermediate trend. This type of trend might last from a month to as long as 8 months. Knowing exactly what the intermediate trend is of excellent importance to the position trader who tends to hold positions for numerous weeks or months at one go.

Short-term trend A short-term trend can last for a few days to as long as a month. Day traders are concerned with identifying and recognizing short-term trends and as such short-term cost movements are aplenty in the currency market, and can provide substantial revenue opportunities within an extremely short duration of time.

No matter which time frame you may trade, it is important to keep track of and determine the main trend, the intermediate trend, and the short-term trend for a better overall photo of the trend.

A trend can be defined as a series of greater lows and greater highs in an up trend, and a series of lower highs and lower lows in a down trend. In truth, rates do not always go higher in an up trend, but still tend to bounce off areas of support, simply like rates do not constantly make lower lows in a down trend, however still tend to bounce off areas of resistance.

There are three trend directions a currency pair could take:.
1. Up trend,.
2. Down trend or.
3. Sideways.

Up trend In an up trend, the base currency (which is the first currency symbol in a pair) appreciates in value. An up trend is characterised by a series of greater highs and greater lows. Base currency 'bulls' take charge throughout an up trend, taking the chances to bid up the base currency whenever it goes a bit lower, thinking that there will be more purchasers at every action, for this reason pressing up the rates.

Down trend On the other hand, in a down trend, the base currency diminishes in worth. The down slope of lower highs is formed by the base currency 'bears' who take control throughout a down trend, taking every chance to offer since they think that the base currency would go down even more.

Sideways trend If a currency set does not go much greater or much lower, we can state that it is going sideways. If you desire to ride on a trend, this directionless mode is one that you do not wish to be stuck in, for it is extremely likely to have a net loss position in a sideways market especially if the trade has not made enough pips to cover the spread commission costs.

For the trend riding methods, we will focus just on the up trend and the down trend.


Intermediate trend Within a main trend, there will be counter-cyclical trends, and such cost movements form the intermediate trend. A trend can be defined as a series of higher lows and higher highs in an up trend, and a series of lower highs and lower lows in a down trend. In reality, rates do not constantly go higher in an up trend, however still tend to bounce off locations of assistance, simply like costs do not always make lower lows in a down trend, but still tend to bounce off areas of resistance.

Up trend In an up trend, the base currency (which is the first currency sign in a set) values in worth. Down trend On the other hand, in a down trend, the base currency diminishes in https://www.mytrendygears.com/ value.

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