Hi what is importance of major trend and minor trend
Guys see this file this may be of some use
Back testing strategy for binary option
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These are usually derived from the time-frame of the chart from which they are identified.
A major trend could be the trend showing on a daily chart. If this is consistently upwards, then any short position should be short-term only and could be following a minor trend, for example from the hourly chart…
Pull-backs in a major trend can often be seen as minor trends.
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There are two types of trends in the Forex market. One is the Major Trend and the other is the Minor Trend. The Major Trend is stronger than the Minor Trend. Professional traders always support major trends. We usually know that the more you touch the price in a trend, the stronger the trend will be. To break this trend, the price has to struggle a lot. On the other hand, the minor trend can break the price very easily. Therefore, the predominance of the minor trend is less.
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A trend is a trend, whether it is a major or minor really depends on the timeframes and strategy you use to trade so called trend. A trend on a lower timeframe is just a bullish/bearish candlestick on a higher timeframe.
Someone who trades 4H charts and down will have their ‘major’ trends in the upper timeframes of what they are trading. But someone who trades weekly charts is going to have a completely different perspective.
My 2 cents anyway, hope it helps.
Happy Trading,
Nate
Nice point of view but trading system change completely depending on the major trend
Like for example
Breakouts against major trends are fake usually.
In other hand breakout aligned with the major trend are most likely are real breakouts
How we can use this concepts
Assume we are intra day trading (15 min tf or lower) previous day candle break the major level like Fibonacci or strong level but that’s aganest the major trend now we have information that maximum breakouts are fake breakouts aganest major trend and now it helps in our decision making process of trading that if we want to trade we need to trade only short positions (here we assuming major trend is down trend)
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Of course, there are major and minor trends but where do we draw the lines ?
I would suggest three or four time frames up. For example if you day trade 5min chart look for confluence on 15m 30m 1hr charts, the monthly, yearly aren’t much use and would have you trading in one direction for ever more !
Al Brooks trades 5min charts and says don’t even look at higher time frames, they only confuse, concentrate on the one that you are on.
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5min charts are exceptionally short, and I guess there’s really no point even considering the daily trend for example on that scale. 5mins is 288 times shorter than 1 day so it would be inappropriate to even consider such a much longer time period.
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This is where MA’s come in handy. I’m currently testing a strategy using the 4H timeframe, going with the trend.
My entry signal uses the MA48, but I have also added a 240 and 480MA which shows me the longer term trends (40 & 80 days), so that I don’t have to keep switching to higher timeframes.
This can easily be applied to shorter timeframes as well.
Very true how MAs relate to higher timeframes,
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A major trend is the main trend over a longer period of time, and is the dominant direction of the market movement. And the movements that last for short periods of time are known as minor trends.
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