Understanding Trend Time Frames and Instructions

There have actually been students asking in the Immediate FX Revenues chat room about the current trend for certain currency pairs. In return, I reply with another question, "According to the past 5 minutes, 5 hours, 5 days or 5 weeks?" Some traders may not be aware that various trends exist in different time frames. The question of what type of trend is in place can not be separated from the time frame that a trend is in. Trends are, after all, used to determine the relative direction of rates in a market over various time periods.

There are primarily three kinds of trends in regards to time measurement:
1. Main (long-term),.
2. Intermediate (medium-term) and.
3. Short-term.

These are talked about in additional detail below.

1. Main trend A main trend lasts the longest time period, and its lifespan may vary in between 8 months and 2 years. This is the significant trend that can be spotted quickly on longer term charts such as the everyday, month-to-month or weekly charts. Long-lasting traders who trade inning accordance with the main trend are the most worried about the essential image of the currency sets that they are trading, considering that fundamental aspects will supply these traders with a concept of supply and demand on a larger scale.

2. Intermediate trend Within a main trend, there will be counter-cyclical trends, and such cost movements form the intermediate trend. This kind of trend might last from a month to as long as 8 months. Knowing what the intermediate trend is of terrific value to the position trader who tends to hold positions for several weeks or months at one go.

3. Short-term trend A short-term trend can last for a few days to as long as a month. It appears during the course of the intermediate trend due to worldwide capital flows responding to day-to-day financial news and political situations. Day traders are concerned with finding and determining short-term trends and as such short-term rate 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 might trade, it is essential to monitor and identify the primary trend, the intermediate trend, and the short-term trend for a better overall picture of the trend.

A trend can be specified 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, costs 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 locations 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 very first currency symbol in a pair) appreciates in worth. An up trend is characterised by a series of greater highs and higher lows. Base currency 'bulls' take charge during an up trend, taking the opportunities to bid up the base currency whenever it goes a bit lower, thinking that there will be more purchasers at every step, hence 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 during a down trend, taking every chance to sell because they think that the base currency would go down even more.

3. Sideways trend If a currency pair does not go much greater or much trendy gear review lower, we can say that it is going sideways. And are neither valuing nor depreciating much in value when this takes place the costs are moving within a narrow variety. If you wish to ride on a trend, this directionless mode is one that you do not want to be stuck in, for it is very likely to have a bottom line position in a sideways market specifically if the trade has not made enough pips to cover the spread commission expenses.

Therefore, for the trend riding techniques, 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 rate motions form the intermediate 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, prices do not always go higher in an up trend, however still tend to bounce off areas of assistance, 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 very first currency symbol in a set) appreciates in worth. Down trend On the other hand, in a down trend, the base currency depreciates in worth.

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