Understanding Trend Time Frames and Instructions

There have been students asking in the Instantaneous FX Profits chat room about the existing trend for certain currency sets. The concern of what kind of trend is in location can not be separated from the time frame that a trend is in.

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

These are discussed in further information listed below.

1. Primary trend A main trend lasts the longest amount of time, and its lifespan might vary in between eight months and two years. This is the significant trend that can be spotted easily on longer term charts such as the everyday, weekly or regular monthly charts. 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 supply these traders with an idea of supply and demand on a larger scale.

2. Intermediate trend Within a main trend, there will be counter-cyclical trends, and such rate motions form the intermediate trend. This type of trend could last from a month to as long as eight months. Understanding exactly what the intermediate trend is of excellent importance to the position trader who tends to hold positions for a number of weeks or months at one go.

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

No matter which time frame you may trade, it is important to keep track of and recognize the main trend, the intermediate trend, and the short-term trend for a much better overall picture of the 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 reality, prices do not constantly go higher in an up trend, but still tend to bounce off locations of support, simply like prices do not constantly make lower lows in a down trend, however still tend to bounce off areas of resistance.

There are 3 trend directions a currency set 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) values in value. An up trend is characterised by a series of greater 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, hence pushing 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 opportunity to sell because 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 say 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 very likely my trendy gears to have a net loss position in a sideways market specifically if the trade has not made sufficient pips to cover the spread commission expenses.

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


Intermediate trend Within a primary 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 truth, rates do not constantly go higher in an up trend, however still tend to bounce off areas of support, just like prices do not always 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 diminishes in worth.

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