There are mainly three kinds of trends in regards to time measurement:
1. Main (long-term),.
2. Intermediate (medium-term) and.
3. Short-term.
These are discussed in further detail listed below.
1. Main trend A main trend lasts the longest period of time, and its lifespan might vary in between eight 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 inning accordance with the main trend are the most concerned about the fundamental photo of the currency sets that they are trading, given that fundamental elements will supply these traders with a concept of supply and demand on a bigger scale.
Intermediate trend Within a main trend, there will be counter-cyclical trends, and such cost motions form the intermediate trend. 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.
Short-term trend A short-term trend can last for a few days to as long as a month. Day traders are concerned with identifying and recognizing short-term trends and as such short-term cost motions are aplenty in the currency market, and can provide substantial earnings chances within an extremely short period of time.
No matter which time frame you might trade, it is crucial to keep track of and determine the primary trend, the intermediate trend, and the short-term trend for a better total image 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, rates do not always go higher in an up trend, however still tend to bounce off locations 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 instructions a currency pair might 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 set) values in value. An up trend is characterised by a series of greater highs and greater lows. Base currency 'bulls' take charge during an up trend, taking the chances to bid up the base currency whenever it goes a bit lower, believing that there will be more buyers at every action, hence pressing up the prices.
Down trend On the other hand, in a down trend, the base currency depreciates in value. 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 since they believe that the base currency would go down even more.
3. Sideways trend If a currency set does not go much higher or much lower, we can state that it is going sideways. When this happens the costs are moving within a narrow range, and are neither appreciating nor depreciating much in value. 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 most likely to have a net loss position in a sideways market particularly if the trade has not made enough pips to cover the spread commission expenses.
For that reason, for the trend riding techniques, we shall 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 greater lows and higher highs in an up trend, and a series of lower highs and lower lows in a down trend. In reality, rates do not constantly go higher in an up trend, however still tend to bounce trendy gear off areas of assistance, simply 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 first currency symbol in a set) appreciates in value. Down trend On the other hand, in a down trend, the base currency diminishes in value.
