Trend is varied and supple concept and can be defined according to traders need. Trend can be defined as price movement as indicators identifies. But everyone can define trend according to their need, logic and what works for them. with then we call it as prices are “trending”.
Each and every financial instruments has its own trending characteristics. Some financial instruments trend more than other while some are so sloppy they can’t be traded on technical decisions. Volatility and market interest are also practical factors for this phenomenon. While some financial instruments trend last for longer period than expected while some moves with short lived trends. This is visible on technical charts that why before deciding to trade in stocks, a traders must see its technical charts and trend other you will stuck with dead investment. Same Stock trend can be variable according to different traders as I already told you, trend can be defined according to ones need. That why you will get different answers for same price chart. In my experience, currency and commodities are most trending instruments while stock as compared to them gives more sloppy moves. Because currency and commodity are directly linked to economies while stocks are not that much. A Traders have to spend their time with chart and security before start of trading in them to get the idea of how it moves when it in trend or how much time it spend in trend and consolidation.
No financial instruments can trend all the time. Even best trending financial instruments spend some time in sideways, which is also a trend. Sideways trend can be called as consolidations. Consolidation means when are not moving much or they are more like trending in straight line. This situation is untradeable but it is a part of is always upcoming uptrend or downtrend. So expert use them to enter long or short before everyone else. You can identify direction bias using time frame tool. If commodity consolidating on daily chart then zoom out to weekly chart and see it part of uptrend or downtrend. When prices start crossing moving averages on upper side then traders can say it is trending in uptrend and vice versa.
Trend and timeframes
Chart timeframes also can change trend perspective. Stock trending on daily chart can be in downtrend on monthly chart. Primary trend always influence underlying secondary trend. That why if we analyses well then entry or exit will be perfect with controlled risk. That why choosing right time frame also necessary to analyze trend and to trade with trend. If short term traders take long or short position based on hourly or weekly chart then expect more chances of trade going wrong. Same can be true for investors if it uses daily chart to take long term investment decisions. That why you cannot say specific about trends without mentioning its timeframe. That will be totally wrong in technical sense. These are complication of market because market is dynamic entity and continuously changing. So next time when mentioning trend then never forgot to add timeframe to its details.