Understanding Trend Time Frames and Instructions

There have actually been trainees asking in the Instant FX Revenues chatroom about the current trend for certain currency pairs. In return, I respond with another question, "According to the past 5 minutes, 5 hours, 5 days or 5 weeks?" Some traders might not be aware that different trends exist in various time frames. The question of exactly what kind of trend is in location can not be separated from the time frame that a trend remains in. Trends are, after all, used to identify the relative direction of costs in a market over various time periods.

There are mainly 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.

1. Primary trend A main trend lasts the longest amount of time, and its lifespan may vary in between 8 months and two years. This is the significant trend that can be spotted quickly on longer term charts such as the daily, regular monthly or weekly charts. Long-lasting traders who trade according to the primary trend are the most worried about the fundamental picture of the currency pairs that they are trading, given that fundamental factors will supply these traders with an idea of supply and demand on a larger scale.

Intermediate trend Within a primary trend, there will be counter-cyclical trends, and such cost motions form the intermediate trend. Understanding exactly what the intermediate trend is of great significance to the position trader who tends to hold positions for numerous weeks or months at one go.

3. Short-term trend A short-term trend can last for a couple of days to as long as a month. It appears during the course of the intermediate trend due to global capital flows responding to everyday financial news and political situations. Day traders are concerned with finding and determining short-term trends and as such short-term cost motions are aplenty in the currency market, and can supply significant profit opportunities within an extremely brief amount of time.

No matter which amount of time you may trade, it is vital to monitor and determine the main trend, the intermediate trend, and the short-term trend for a much better total image of the trend.

A trend can be defined as a series of higher 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 constantly go higher in an up trend, however still tend to bounce off locations of assistance, simply like rates do not always make lower lows in a down trend, but 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 set) appreciates in worth. An up trend is characterised by a series of higher highs and higher 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, believing that there will be more purchasers at every step, for this reason pushing up the rates.

2. Down trend On the other hand, in a down trend, the base currency diminishes in worth. If EUR/USD is in a down trend, it means that EUR is decreasing against the USD. A down trend is characterised by a series of lower highs and lower lows, but likewise, the currency does not always make lower lows, however still tends to make lower highs. The downward slope of lower highs is formed by the base currency 'bears' who take control throughout a down trend, taking every opportunity to offer because they think that the base currency would go down a lot more.

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

Therefore, for the trend riding methods, https://www.mytrendygears.com/ we shall focus only on the up trend and the down trend.


Intermediate trend Within a main trend, there will be counter-cyclical trends, and such rate movements form the intermediate trend. A trend can be specified as a series of higher lows and greater highs in an up trend, and a series of lower highs and lower lows in a down trend. In truth, costs do not constantly go higher in an up trend, however still tend to bounce off locations of support, just like costs do not always make lower lows in a down trend, however still tend to bounce off areas of resistance.

Up trend In an up trend, the base currency (which is the first currency symbol in a set) appreciates in value. Down trend On the other hand, in a down trend, the base currency diminishes in worth.

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