Forex glossary
Trend
A trend is the dominant price direction over a selected horizon under a chosen method. Swing analysis describes an uptrend through higher highs and lows, and a downtrend through lower highs and lows. An incomplete sequence may indicate a range or transition; different timeframes can show different directions.
Illustrative example
How does it work in practice?
Assume H4 highs of 110 and 115 with lows of 100 and 105. That is an upward swing structure; simultaneous lower M15 highs may describe a pullback within the broader move.
A case to work through
Two horizons at once
Hypothetically, H4 highs rise 100→110 and lows 90→96, while M15 highs fall 108→106 and lows 103→101.
- H4 fits upward structure and M15 local downward structure.
- The descriptions concern different scales and can coexist.
What follows? Add the horizon to each label rather than selecting one universal direction.
Example boundary: Later swings can change classification; direction is neither strength nor profitability.
A useful distinction
Trend / Trend Strength
Trend identifies direction under a method; trend strength measures directional movement using a chosen metric.
Check your understanding
Separate larger-scale structure from a local retracement.
Show the answer and explanation
No; they describe different horizons
The shorter timeframe can describe a retracement within the larger move.
From observations to price structure
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Related terms
Sources and documentation
- StockCharts – support and resistance
Reaction zones, break criteria and possible role reversal of levels.
Document read: - TradingView – Pivot High/Low
Left/right observation comparisons and delayed pivot confirmation.
Document read:
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