Reading the trend on more than one timeframe

A 5 minute chart can show a strong rally while the 4 hour chart is in a clear downtrend. Both are true at once. Which one matters depends on how long you plan to hold.

Why the bigger picture matters

Moves on small timeframes are like ripples on a tide. Swimming with the tide is easier. When the next timeframe up points the same way as your trade, there tend to be fewer traders positioned against you.

How the site reads a trend

To keep things objective, the checker uses a fixed rule on every timeframe:

• Up: price is above the 50 period average, that average is rising, and it sits clearly above the 200 period average.
• Down: the mirror image.
• Sideways: anything else.

The trend table on the technical screen shows this for M5, M15, H1, H4 and D1, and whether each one agrees with your direction.

Which timeframe is "next up"?

Key points

• Check the timeframe above the one you trade before you enter.
• Trading against the bigger trend isn't forbidden, but it's harder, so expect lower odds.
• When most timeframes agree, the trade has more support.