IMHO a trend is the major direction the price is going to in a certain TF during a certain period of time. a dailly uptrend can have multiple downtrend s in smaller TF. and so on…
to me the best way of identify that major direction is by spot the swings high or lows…
The candles between A and B definitely obey the higher highs and higher lows rule.
Therefore, according to the above definition, the price action between A and B is a trend.
But what about the regions in yellow?
[B]There is something not quite right here!!
We need to be 100% correct all of the time for our trading system to work.
If the above definition has inadequacies, we need to either throw it out, or modify it.
and in your chart with the yeallow parts… the way i look at the cahrts i can see 3 diferent trends…
3 different trends?..Then do we have proof that the present definition above (which seems to have general agreement) is not nearly specific enough??
Remember we are trying to develop a trading system based on the definition.
And also a great thanks to you for keeping the candlestick threads intact while I was away on holidays.
You did a superb job!!
Now you have introduced 2 timeframes in the definition.
We need to have a universal definition for one timeframe, then we can simply refer it to any timeframe we want.
It looks like an up trend apart from the yellow bits. The high point in the second yellow part could be a lower high in a down trend on a higher time frame. I wouldn’t like to make a guess either way on that chart alone.
Yes, I will certainly work towards that.
However, this thread is only in its infancy being only one day old. :eek:
I was really looking for much more input since I know from teaching that the best way to learn is to provide input such as what you are doing.
well i guess a trend in a given TF can be a single candle in a higher TF
True, but now we are no longer trading a trend.
[B]Hint[/B]
[B]Honorary FX Member, Tonymand[/B], in agreement with others has given a gem of a contribution…higher highs and lower lows.
This is a great general statement, but not detailed enough for our trading purposes.
However, we would do well to continue working with that contribution as a base framework!!
well tymen… i always had heard that a good teacher is a teacher who knows to ask great questions…
those 6 questions posted by you are very good and i can´t aswer to any:(
if this thread give the aswer to those questions it will be one of the most important threads everyone can read…
i´m very interested on this… higher lows and lower highs is the only thing i use in trading and know how to aswer those questions will be very usefull
well but how can you know wich one of the lows is the lowest??? or wich one of the highs is the highest??? a trend can be very clear after it is formed and ended… but spot it during the trend move is not easy…
Price has fractal like characteristics. Self similarity at all scales. Or at least it seems to. I dont know if that observation has any usefulness in an objective definition of trend. Probably not. But it’s something that keeps rolling around in the back of my mind.
A trend is defined as a period of higher highs or lower lows for a given timeframe with minimal retracements of less than 50% of the total directional move, whether in the positive (+ pips) or negative (- pips) direction.
Input appreciated and thanks Tymen this thread is shaping up to be EXCELLENT.
OK heres my attempt, how about,
An upward trend is when the average highs are higher than the average lows in any given time period and vice versa for a downward trend.