Understanding Trend Time Frames and Instructions

There have been students asking in the Instantaneous FX Profits chat room about the present trend for particular currency pairs. The question of exactly what kind of trend is in location can not be separated from the time frame that a trend is in.

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

These are talked about in more detail below.

1. Main trend A main trend lasts the longest period of time, and its life expectancy might range in between 8 months and two years. This is the major trend that can be spotted quickly on longer term charts such as the day-to-day, regular monthly or weekly charts. Long-lasting traders who trade according to the primary trend are the most worried about the essential photo of the currency pairs that they are trading, since basic aspects will offer these traders with a concept of supply and demand on a bigger scale.

Intermediate trend Within a primary trend, there will be counter-cyclical trends, and such rate motions form the intermediate trend. Knowing what the intermediate trend is of terrific significance 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 few days to as long as a month. Day traders are worried with finding and identifying short-term trends and as such short-term rate movements are aplenty in the currency market, and can supply substantial revenue opportunities within an extremely short duration of time.

No matter which timespan you may trade, it is crucial to keep track of and determine the primary trend, the intermediate trend, and the short-term trend for a much better general picture of the 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, costs 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, but still tend to bounce off areas of resistance.

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

1. Up trend In an up trend, the base currency (which is the very first currency sign 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 higher highs and higher lows. In real life, in some cases the currency does not make greater highs, however still makes greater lows. Base currency 'bulls' take charge throughout an up trend, seizing the day to bid up the base currency whenever it goes a bit lower, believing that there will be more purchasers at every action, hence pushing up the costs.

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

3. Sideways trend If a currency set does not go much greater or much lower, we can say that it is going sideways. And are neither appreciating nor depreciating much in worth when this happens the costs are moving within a narrow variety. If you want 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 particularly if the trade has actually not made enough pips to cover the spread commission costs.

For that reason, for the trend riding methods, we will focus only on the up trend and the down trend.


Intermediate trend Within a primary trend, there will be counter-cyclical trends, and such price motions form the intermediate 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 truth, rates do not constantly go higher in an up trend, but still tend to bounce off areas of support, simply like rates do not always make lower lows in a down trend, but still tend to bounce off locations of resistance.

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

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