Collectible card · Common
Higher-timeframe trend
The direction of the 4-hour chart: is price making a sustained move up, down, or going nowhere?
Why it works
Big players (banks, funds) position on higher timeframes. Trading with their flow means the "current" helps you; trading against it means you need perfect timing.
How to use it
Before entering on 5m or 15m, check the 4H. Look for buys in an uptrend and sells in a downtrend. In a sideways 4H, trade the edges of the range or stay out.
The typical mistake
Selling every small red candle in a strong uptrend. A pullback is not a reversal until structure breaks.
FAQ
What is Trend in trading?
The direction of the 4-hour chart: is price making a sustained move up, down, or going nowhere?
How do you trade Trend?
Before entering on 5m or 15m, check the 4H. Look for buys in an uptrend and sells in a downtrend. In a sideways 4H, trade the edges of the range or stay out.