Option Investor

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Primary Trend

The common definition of the primary trend is the main trend that affects the daily and weekly charts. This is normally a year to a year and a half long trend. However, this term (as well as many other trend terms), were made when traders almost always traded in days and weeks. With shorter-term trades, lasting a few days to a few seconds, this terminology no longer makes much sense, as a 12 month trend is not a factor for a trader who is going to hold their trade for only a few seconds. The concept of the Primary Trend was developed to aide traders in seeing what was going to be exert the most influence on their trade. Since that is still an important idea, in this primer we will refer to the trend that exerts the most influence on the trade in question, regardless of
the time period of that trade.