Identifying the Trend

Hi
I am a bit confused on how to identify the trend and how much data to take into account.

I the first image it is clear that the GBP/USD is in an uptrend


But what about image 2 of the EUR / USD is it in and uptrend / down trend or going sideways. Is this the pull back in the uptrend and I should be looking for buys or is it in a downtrend and looking for sells?

Look at the W timeframe and you can see the direction of the larger trend. This is an uptrend, and the support has been broken (ellipse marked).
Now look at the D timeframe and you already know that there is a breakout of the uptrend on the W.
Let's note the beginning of a downtrend, while we can talk about its continuation only when it goes below the level of 1.19520 (ellipse marked).

On both of your charts, the markets are down-trending as they are making lower and lower resistances as marked ...
As whether they are trending or correcting in the current charts, we have to compare them with their higher timeframe charts ...

You make your own calls. First decide which time frame to use to guide on the trade direction/trend. Then use a lower time frame for trade entry.

Stay safe, trade safe.

KP

Quoting GrantMcscott

Disliked

Hi I am a bit confused on how to identify the trend and how much data to take into account. I the first image it is clear that the GBP/USD is in an uptrend {image} But what about image 2 of the EUR / USD is it in and uptrend / down trend or going sideways. Is this the pull back in the uptrend and I should be looking for buys or is it in a downtrend and looking for sells? {image}

Ignored

Hi Grant,

At a basic level, if you zoom out all the way and there are still higher pivots to the left. The pair is in a downtrend. However, looking at trends based on past price is backward looking. As traders, the only way to make money is by learning how to be forward looking.
In other words, we want to be concerned with what price will do in the future. Focusing on what price will do in the future, I believe, is the only way to
make money in the markets in the long-term.
So, here's an example of looking at trends in a forward looking manner.
Since the price action short was strong on last major pivot high, and the price action long was weak on last major pivot low, the trend is short until at least the last pivot low ( where the weak price action was). Thus we are looking for short entries until that pivot low.

I hope this helps!

Ken

The "trend" does not matter.

Choose a time frame for your directional analysis.
Choose a smaller time frame for your setup.
Choose an even smaller time frame for your trigger.

When you are in a trade.

Go back to your setup time frame and manage the trade.

When your trade closes.

Go back to the directional analysis and see if you still need to be trading in a certain direction.

The question then becomes, "who is in control of the Directional time frame and Set-Up time frame ?"

for me, swing high 3 candles, middle candles high is the highest, swing low, middle candles low is the lowest.
If I can identify a swing high and a swing low in the price action that led me to the RHS of the chart. I can work out whether the price then continues to go higher than the previous swing high (bullish continuation) or lower than the previous swing low (bearish)
When you know what time frame is directional and who is in control of the current direction, you can look for setups.

Trend depends purely on timeframe and period imho