Understanding Trend Time Frames and Directions

There have actually been students asking in the Instantaneous FX Profits chat space about the current trend for specific currency sets. The question of exactly what kind of trend is in place can not be separated from the time frame that a trend is in.

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

These are gone over in further information below.

Primary trend A primary trend lasts the longest duration of time, and its lifespan may vary in between eight months and 2 years. Long-lasting traders who trade according to the primary trend are the most worried about the basic picture of the currency sets that they are trading, given that essential aspects will provide these traders with an idea of supply and need on a larger scale.

Intermediate trend Within a main trend, there will be counter-cyclical trends, and such price movements 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.

Short-term trend A short-term trend can last for a few days to as long as a month. Day traders are worried with identifying and identifying short-term trends and as such short-term price motions are aplenty in the currency market, and can supply significant profit opportunities within an extremely brief duration of time.

No matter which time frame you may trade, it is crucial to keep an eye on and identify the primary trend, the intermediate trend, and the short-term trend for a better general image of the trend.

In order to embrace any trend riding strategy, you must first determine a trend instructions. You can easily gauge the direction of a trend by looking at the cost chart of a currency set. 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 constantly go higher in an up trend, however still have the tendency to bounce off areas of support, just like costs do not always make lower lows in a down trend, however still have the tendency to bounce off locations of resistance.

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

1. Up trend In an up trend, the base currency (which is the first currency symbol in a set) values in worth. For instance, if EUR/USD remains in an up trend, it means that EUR is rising higher against the USD. An up trend is characterised by a series of greater highs and higher lows. However in real life, sometimes the currency does not make higher highs, but still makes higher lows. Base currency 'bulls' take charge throughout an up trend, taking the opportunities to bid up the base currency whenever it goes a bit lower, believing that there will be more buyers at every step, hence pushing up the costs.

2. Down trend On the other hand, in a down trend, the base currency diminishes in value. For example, if EUR/USD is in a down trend, it means that EUR is declining against the USD. A down trend is characterised by a series of lower highs and lower lows, but similarly, the currency does not always make lower lows, but still tends to make lower highs. The downward slope of lower highs is formed by the base currency 'bears' who take control during a down trend, taking every opportunity to sell because they believe that the base currency would go down much more.

3. Sideways trend If a currency pair does not go much higher or much lower, we can say that it is going sideways. When this happens the prices are moving within a narrow range, and are neither appreciating nor depreciating much in value. 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 likely to have a bottom line position in a sideways market specifically if the trade has actually not made sufficient pips to cover the spread commission costs.

Therefore, for the trend riding techniques, 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 motions form the intermediate trend. A trend can be specified as a series of greater lows and greater highs in an up trend, and a series of lower highs trendy gear review 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.

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

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