What exactly does trading with the trend mean?

[kev267]

Hi,

First of all, I have finally started trading without any indicators and looking at only price action and I suggest anyone else struggling with trading should also do the same because it will save you a lot of time wasting!

Anyway, my question is what exactly does trading with the trend mean? When I hear this term, I wonder whether people mean trade with the higher timeframe trend (such as the daily chart) or do they mean trade with the trend on the lower timeframe (such as the 4 hour chart)?

I’ve attached an image of NZDUSD, you can see that this is still in an uptrend on the daily chart, but in a downtrend on the 4 hour chart. Where the 4 hour chart price is at the moment, you can see it has come to the black line support level and then I have the black line resistance higher up at 0.68204.

Should I be looking to go long from here because the daily chart is in a uptrend, but I would need to wait for some bullish price action on the 4 hour to confirm that it wants to continue upwards? Also, if the daily chart was in upside down and in a downtrend, is it still safe for me to trade long on the 4 hour chart against the daily chart trend?

Thanks for your help!

[tommor]

I think most traders would wish both time-frames’ trends to be in the same direction. They would then use the H4 chart to enter at the most advantageous price/time - i.e. buying after the H4 chart shows recovery upwards from a pull-back but before price goes too high.

If the daily chart was in a downtrend, you could sell into the start of a pull-back showing on the H4 chart but the TA basis for the trade needs to be stronger, its duration should be that much shorter and the stop-loss that much tighter.

[Molly141]

I am new but going through the school quite raidly and really enjoying it!
You want the trend to be the same on the daily, 4hr and 1hr before trading with the trend