Trend.
Trend is the general direction in which an instrument moves. Trends can be upward ( bullish ), downward ( bearish ) or sideways (flat). There is no specific time frame for directions to be considered a trend, but in general, the longer it is maintained, the more obvious the trend becomes. Also, the terms "market structure" ("MS") and "trends" are also considered a trend. The trend is an integral part of trading. For better profitability it is better to take positions in the direction of the trend, not against it.
Trend Definitions.
An uptrend is defined when the price of an asset consistently makes higher highs and lows, while a downtrend occurs when the price makes lower lows and lower highs. A trend is sideways or horizontal when price fluctuates between fixed levels of support (the lowest boundary) and resistance (the highest boundary).
Schematic example of a bullish trend:
Schematic example of a bearish trend:
Example of a flat. The price does not update the highs/minimums.
The older the timeframe, the more important the trend. For example, the trend on the daily timeframe is much more important than the trend on the hourly timeframe. If the trends on different timeframes differ, it is better to prefer the trend of the older timeframe.
If it is difficult to determine the trend on a higher timeframe, the trend of a lower timeframe can be used as a guide. To find the trend, you can use auxiliary tools such as muwings and trend lines. Finding a lower muwing above a higher one indicates an uptrend. Conversely, a larger one above a smaller one indicates a falling trend. Moovings on the chart (smaller one - red, larger one - blue).
Example of an uptrend on the chart. Price updates higher highs and lows:
Пример нисходящего тренда на графике. Цена обновляет более низкие максимумы и минимумы:
The trend is the cornerstone of any trading strategy. If the trend is successfully detected, it is preferable to consider positions in the direction of the trend. The possibility of making a mistake is significantly reduced under these conditions. When the price is in a flat, we should trade in a range according to the system of trading in the Range (hereinafter referred to as Renge). The trend is your friend. This interpretation of the trend extends the concept of using trend lines and reveals the English concept of market structure (MS)