Trends within different Timeframes

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As there is no answer yet , i will propose my theory.



The white trend is the weekly and the red is the daily , the proof is in the way the timeframes break down.


Every timeframe contains its own trend and the components of the higher timeframes trend.


The Weekly trend is best viewed from daily using the swings in white and the daily trend is best viewed from the 4 hour using the same prinicple for drawing the swings.


The majority of traders are joining the swings on a timeframe and refering to them as that timeframes trend without realising that they are actually trading the higher timeframe trend which could be a retracement against the true higher timeframe trend.




pipfarm

Take a look at the eurjpy 4H uptrend but that timeframe does not tell you much ,if you want to view the uptrend go to the 60 minute. If you want to know if your trading with or against the higher timeframe trend go up to the daily and you will see the 4 hour uptrend is a retracement against the daily downtrend.


pipfarm

I think your definition of trend needs a slight adjustment. Your red and white lines are very close to the bars. Try three MAs. Maybe 25, 50 and 100. I think this will help clarify the idea of trend.

Cheers!

No adjustment necessary , the trend of any timeframe is what you see in front of you , the bigger swings are the higher timeframe trend, as we saw today the 4 hour trend on the ej chart i posted continued up to make new highs.


pipfarm