Ask Colin

Sometimes the trend on the daily chart is the opposite of that on a weekly chart. What do we do?

Trends exist in many timeframes. Long-term trends influence short-term trends. The best trades are made when trading a trend in your timeframe that is in the same direction as the longer-term trend. If we are trading a medium term trend, we should probably use all three charts: A monthly chart for the long-term trend. A weekly chart for the medium term trend, which we are trading. A daily chart for the short-term trend on which we are tactically opening and closing our trades.