There are mainly 3 kinds of trends in terms of time measurement:
1. Main (long-lasting),.
2. Intermediate (medium-term) and.
3. Short-term.
These are discussed in additional information below.
Main trend A main trend lasts the longest period of time, and its life expectancy might vary between eight months and two years. Long-term traders who trade according to the main trend are the most concerned about the fundamental picture of the currency pairs that they are trading, considering that basic factors will offer these traders with a concept 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. Knowing 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 concerned with spotting and determining 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 better overall photo 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 locations of assistance, simply like rates do not constantly make lower lows in a down trend, however still tend to bounce off locations of resistance.
There are 3 trend instructions a currency set could take:.
1. Up trend,.
2. Down trend new trendy gears or.
3. Sideways.
Up trend In an up trend, the base currency (which is the first currency sign in a pair) appreciates in worth. An up trend is characterised by a series of higher highs and greater 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 buyers at every action, thus pushing up the rates.
Down trend On the other hand, in a down trend, the base currency diminishes 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 offer because they think 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. And are neither valuing nor diminishing much in value when this happens the costs are moving within a narrow range. 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 specifically if the trade has not made sufficient pips to cover the spread commission expenses.
For that reason, for the trend riding methods, 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 movements 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 reality, rates do not always go higher in an up trend, but still tend to bounce off locations of support, just like costs do not constantly 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 first currency sign in a set) appreciates in worth. Down trend On the other hand, in a down trend, the base currency diminishes in value.
