How do you handle the conflicting trends between different timeframes?

different timeframes conflicting trends

For example, if you're bullish on a larger timeframe and bearish on a smaller one, how do you proceed? Should you focus on the larger trend and trade smaller? The trend in a larger timeframe is stable, but changes more slowly than in a smaller one; while the trend in a smaller timeframe changes more quickly than in a larger one, it's more prone to false signals.

The conflicting trends between timeframes encountered during trading are actually quite easy to resolve.

For those who struggle to discern trend signals between different timeframes, the root cause is a lack of clarity about their trading strategy development.

To give a simple example, many traders analyze the market primarily based on the daily chart, but then formulate their strategies based on the hourly chart. This situation is not uncommon, and it often occurs among beginners.

In this case, I want to emphasize that market analysis and strategy formulation are two distinct and distinct processes that should not be confused. They are not substitutes for each other, but rather complement each other, each being indispensable.

On the other hand, I think I still need to emphasize to the questioner that the international capital market operates 24 hours a day, divided into three sessions: the morning Asian session, the afternoon European session, and the evening US session. The market trends during these three periods differ fundamentally. The Asian session primarily reflects a continuation or correction of the previous night's US session; the European session exhibits the initial volatility of the day's market; and the US session is the primary market trend period, but with greater volatility.

Therefore, based on the daily trends of the commodities in these three regional trading periods, traders will naturally favor the US session, followed by the European session, and finally the Asian session.

Thus, considering the three regional trading periods, the question raised by the original poster should be easily answered.

When the trends indicated by the major and minor cycles conflict, we tend to wait for an opportunity—entering the market when the major and minor cycles align.

The major and minor cycles have different uses in trade planning.

Generally speaking, the major cycle is used to establish the commodity trend, while the minor cycle is often used to determine entry and exit points. This approach to large and small cycles is similar to the Wave Theory principle that an impulse wave contains two corrective segments, and a corrective wave contains at least two impulse segments. "The big wave contains the small wave, and the small wave contains the impulse." The movement of any price wave requires alternating corrective segments and driving segments to advance.

Therefore, when the trend direction determined by the large cycle diverges from that of the small cycle, it's likely that the small cycle chart is undergoing a temporary technical correction. It's best to wait for the small cycle correction to end before entering into a unilateral trade aligned with the trend of the large cycle.

Some may ask, could this be a market shift at the beginning of a trend? While small cycles are volatile, they are much more sensitive to trend reversal signals than large cycles.

This situation certainly exists and occurs frequently.

This requires us to clarify one point, which is also recognized by international trading experts: "When trading, it's best to enter the third wave."

Trading is about making sensible trades. There's no need to risk your money in unstable markets. It's best to wisely ignore these brief periods of trend reversal.

Generally speaking, the safest and wisest approach to switching between large and small cycles is when they resonate.

Since it's real money, there's no need to test your nerve by fighting the market.

How do we deal with conflicting trends between different cycles? Before answering this question, let's first examine Dow Theory's classification of trends.

![1.png](https://moer.si/usr/uploads/2025/09/474621953.png)

Based on the duration of time, Dow Theory divides trends into three types: primary, secondary, and short-term trends, like tides, waves, and ripples in the ocean.

This metaphor vividly illustrates the length and scale of trends.

What we commonly refer to as different cycles are actually trends of different periods. The large cycle refers to the primary trend, the medium cycle to the secondary trend, and the small cycle to the short-term trend.

Naturally, we sometimes use the term medium cycle to simply describe the primary and short-term (secondary) trends.

Let's look at Dow Theory's explanation of different cyclical trends: each trend is a component of a larger, longer-term trend.
For example, a medium-term trend is a correction within a major trend.
A good example of this is a long-term uptrend where the market pauses, corrects for several months, and then resumes its upward trend.

![2.png](https://moer.si/usr/uploads/2025/09/991465011.png)

This medium-term trend itself is often composed of shorter-term waves, presenting a series of ups and downs.
It should be emphasized repeatedly that each trend is a component of a larger, longer-term trend, and is itself composed of shorter-term trends.

At this point, I believe everyone should understand that what we commonly refer to as a major cycle is actually a combination of many smaller cycles. When a major upward cycle is in progress, it may sometimes experience minor cycles of fluctuations, or even minor cycles of decline. However, over time, they all inevitably move in an upward trend. In other words, fluctuations are a relay of the upward trend, and declines are merely normal adjustments between large rises and small pullbacks.

If you were a trader in this situation, what would you do? Of course, you would follow the trend of the major cycle and primarily buy on dips and go long!

The same logic applies to a major downward cycle as well, and you can reason about it.

Therefore, when trends in different cycles conflict, we shouldn't be surprised, as this is common.

In such situations, we need to clearly identify the major cycle trend and operate accordingly.

Generally speaking, when different cycles conflict, the resulting trend may cause a brief "unevenness," but it can also have a ripple effect, triggering a reversal of the larger cycle trend.

The prerequisite for trading across different cycles is to clearly define the timeframe. A month has four weeks, a week has five trading days, an hour has four 15-minute trading periods, and so on, forming the weekly, daily, hourly, and 15-minute levels.

Thus, we refer to the daily chart as the major cycle, and the 15-minute chart as the minor cycle.

Each cycle is sequential.

We should primarily focus on the trends of the two time periods above and below. It is not recommended to jump directly from the monthly chart to the daily or hourly chart, skipping the weekly chart.

Whether we are tracking medium- to long-term trends, short-term swing trading, or even intraday scalping, the key to successful trading is to follow the trend.

If you are trading on the hourly chart, the direction of the MA20 represents the hourly "trend." To follow the trend, do not operate in the opposite direction of the MA20 moving average for that period.

Similarly, the MA5 on the hourly chart represents the MA20 on the 15-minute chart.

The MA20 on the 1-hour chart represents the MA5 on the 4-hour chart.

![3.jpg](https://moer.si/usr/uploads/2025/09/1041188248.jpg)

If the trends of the current and next cycles coincide, the trend will be relatively smooth, and based on this, we can identify critical price changes.

However, we often see contradictory trends across time periods. Trends in smaller cycles can be corrections in larger cycles; and a failure to break through a smaller cycle can be an entry point for the end of a larger cycle correction.

There's actually no one-size-fits-all solution to this problem, so it's probably better to rely on experience.

When the directions of the larger and smaller cycles diverge, such as when there's a discrepancy between the weekly and daily charts, the trend generally exhibits the following patterns:

Oscillating.
This is reflected in the chart as a lack of trend. At this point, it's important to be patient.

Because there's no clear price trend in either the larger or smaller cycles, it's easy to repeatedly get stopped out.

Thus, for trend traders, this is a "no-trade period." Adjustments at the same trend level.
After the adjustment, the market continues in the original trend, continuing the direction of the current time period.
When the trend restarts, it becomes our entry point or point for increasing our position in this trading cycle.
Another important point to note is that generally, there's no need to exit a low-cycle adjustment; simply add to your position after the adjustment is complete.

![4.jpg](https://moer.si/usr/uploads/2025/09/1502990656.jpg)

A larger-scale adjustment results in a change in the trend of your trading cycle.
For example, if you're trading hourly charts, a 15-minute chart may show a trend that's opposite to the hourly chart, and this trend is long-lasting and large, causing the hourly chart trend to change.
At this point, you should also pay attention to the daily chart. If a breakout fails or progress is slow on the hourly chart, this often indicates an entry point for the next level.
Different cyclical trends are commonplace.
The popular market theory is that large cycles determine direction, while small cycles select entry points.

Simply put, if the long-term trend is clearly down, then the trade direction is to go short; if the short-term trend shows a top divergence or a strong top formation, then enter the market.
This is a purely technical trading method!

Different trading styles will have different approaches when trends conflict.
If you're a firm believer in daily K-line analysis, in addition to looking at the daily chart, you should also pay attention to the 15-minute to weekly K-line charts.

Look at this daily chart. It's a downtrend, but smaller timeframes show an uptrend. What should we do in this situation?

![5.jpg](https://moer.si/usr/uploads/2025/09/2616912836.jpg)

This first involves the question of which trend direction is dominant.
Simply put, in the above chart, the primary trend should be down, with an uptrend as a secondary factor.

So, after determining which direction is dominant, can we proceed directly? No, we also need to consider the current market position and its specific reactions. Let's look at the following chart:

![6.jpg](https://moer.si/usr/uploads/2025/09/1925201296.jpg)

The green boxes in the chart represent key resistance levels in the primary downtrend, while the red boxes represent key resistance levels in the secondary uptrend.
When an uptrend forms, the price also hits key resistance in the downtrend. We should first consider short positions, as they are the primary focus.

At the same time, we must also consider the existence of a secondary uptrend. At this time, short positions should be taken at key resistance levels in the uptrend, and then we should monitor the price's subsequent developments.

Eventually, if the price rebound fails and continues to decline, we can resume short positions based on smaller timeframes.

When prices develop different trends, we first need to identify the primary and secondary directions, then identify the primary and secondary resistance levels. Then, based on the price's reaction at these resistance levels, we can make appropriate trades.

This completes a trade under conflicting cycles.

Regarding Dealing with Conflicting Trends Between Different Cycles

By asking this question, a trader's level of skill should have already surpassed the pursuit of various indicators and specific trading techniques. At this point, they've gradually transcended the "technique" and begun to seek the "Tao."

I personally approached this problem by reading Zhuangzi and some texts on Tai Chi, and I'm sharing this with my fellow forex traders.

![7.jpg](https://moer.si/usr/uploads/2025/09/2763754462.jpg)

As shown in the image above, to put it simply, the current market level is like the Tai Chi diagram we see, with the Yin and Yang fish representing the bulls and bears at this level. This presents a cyclical state of mutual inclusion, a cycle of decline and prosperity.

![8.jpg](https://moer.si/usr/uploads/2025/09/2059438799.jpg)

Below this level, the two fisheyes can also be seen as the yin and yang of the next level, generating their own bullish and bearish trends at a smaller level, simultaneously presenting a cycle of mutual inclusion, a cycle of decline and prosperity.

Similarly, this pattern also occurs at the level above the basic level.

So, no matter what level the trend is, when viewed from a larger perspective, it is always part of another larger-scale oscillation.

No matter what level of oscillation is, when viewed from a smaller perspective, it is always part of another smaller-scale trend.

So, how do we manage this relationship?

In fact, if we use this idea to view the market from a perspective of unity and opposition,

For example, if I want to trade a smaller-scale trend,

What should I look for? I'll find the oscillation above this trend.
Once you've determined the starting point, end point, start time, and end time of this small-scale trend, your strategy for this trend is set. This is what's called looking at the big picture and acting small.

So how do you find an entry point?

For those seeking greater precision, a higher profit-loss ratio, and a higher win rate, you should look for smaller levels. There's always a point with a high win rate and a larger profit-loss ratio.

For example, if I want to invest in a bullish trend,

The bottom of a larger-scale oscillation has just been reached.

The trend has entered the early stages of this level. The market is unstable, having just experienced a short uptrend and then entered a small oscillation period.

At this point, observe the smaller levels and you'll definitely see a sudden market change.

This point is the best entry point.

I don't know if I've been rambling on for so long, but I'm still articulating myself clearly.

![9.jpg](https://moer.si/usr/uploads/2025/09/3590776449.jpg)

The inconsistency between different cycles is a common problem we encounter during daily trading.
I believe that experienced traders have their own well-established strategies for dealing with this.
This is especially true for traders who primarily focus on medium- and long-term trading, who often exploit short-term opportunities during market corrections.

A good trader won't sacrifice immediate profits for long-term value. Trading is all about making money, and as long as there's confidence, no matter how small, they won't miss out.

In trading, greed should be justified, and selling should be measured.

The different cycles are used in conjunction with each other, often used for entry and exit points and the alternation between long-term and short-term trading.

1. Establishing Entry and Exit Points

We often encounter situations where the larger cycle confirms the start of a trend, but the closing of the smaller cycle indicates a subsequent pullback. For traders, the most challenging skill is determining entry and exit points. We all know that trading is all about profiting from price differences, so the safer the entry price, the more advantageous the exit point.

For retail investors, who typically have small capital and short holding periods, the most commonly used timeframes are the one-hour and four-hour charts.

Below, I'd like to share my methods for determining trends on the four-hour chart and confirming entry points on the one-hour chart. I hope we can learn from each other.

Case Study 1

![10.png](https://moer.si/usr/uploads/2025/09/4168435272.png)

Take the gold market at 2:00 AM on September 8, 2020, as an example.

l The four-hour chart shows a candlestick pattern that has already closed at the bottom and profited, indicating a clear bullish trend.
l Looking back at the one-hour chart, at entry point A, the KD and SHORT oscillators clearly show that the fast lines have reached the overbought zone, indicating a short-term price correction.
l Looking again at the one-hour chart, at entry point B, the KD and SHORT oscillators clearly show that the price correction has ended, and the fast lines are both within the safe range, indicating ample room above the bullish trend and a good time to enter a long position.

In summary, entry point B is the most suitable entry point compared to entry point A.

When combining the four-hour and one-hour charts, the key is to understand the entry signals provided by the candlestick pattern on the one-hour chart and then use oscillators to confirm the accuracy of the entry signals.

This is the trend trading method, which combines trend, timing, and momentum.

2. Short-term pullbacks

![11.png](https://moer.si/usr/uploads/2025/09/1028025880.png)

Traders who focus on medium- and long-term trading often use a daily chart as a reference trading cycle, which often leads to short positions or long-term holdings.

Trend trading has both advantages and disadvantages. The advantage is that it allows for stable profits from a single-sided market trend. The disadvantage is that it creates short positions and reduces capital utilization.

Thus, you can take advantage of pullbacks during medium- and long-term market trends to make quick money in the short term.

Take the daily gold chart from August 19, 2020, as an example.

The daily bearish trend was confirmed, and the subsequent small bullish candlestick formation on August 20th indicated a short-term bullish pullback opportunity.

On the four-hour chart, the SHORT and KD oscillators both indicate a bottoming divergence signal, and the candlestick pattern confirms a bottoming bullish trend.

Therefore, this is an opportunity for short-term, quick entry and exit strategies.

How? The methods are actually quite simple and not overly complicated. Simple naked K-line techniques combined with oscillators can effectively implement both short-term and medium- to long-term strategies.

This is all closely related to the timeframe. Whether you're following medium- to long-term trends or trading short-term, you can't do without analyzing these key points.

However, it's important to note that everyone has different personalities, so choosing the right trading cycle for each trader is crucial. After all, the best fit is the one that works best for you.

The core element of price movement is time, and cycles are the most important manifestation of time. The relationship between price trends and cycles follows certain laws:

① The overall price trend is formed by the opposition and unity of different cyclical trends. The large-cycle trend is the primary aspect of this contradiction, while the small-cycle trend is the secondary aspect.

② Small cycles are volatile, leading, and short-lived, generally resulting in less room for price fluctuations; large cycles are stable, lagging, and long-lasting, generally resulting in greater room for price fluctuations.

③ A large-cycle trend is composed of several small-cycle trends that rise, fall, or fluctuate sideways. The overall price trend is determined by the large cycle, and reversals in the large cycle are first reflected by the small cycles.

④ Small and large-cycle trends move in opposite directions. Short-term market trends follow the direction of the small-cycle trend, while the large cycle constrains the duration and price fluctuation range of the small cycle, resulting in a slow rebound or correction in the small cycle.

⑤ If the small-cycle trend aligns with the large-cycle trend, they form a resonance between the different cyclical trends. Their combined forces are amplified, resulting in a rapid rise or accelerated decline.

Therefore, when looking at candlestick charts, conflicting trends between different time periods are a common occurrence in the market.
In actual trading, handling these conflicting trends between periods varies from person to person, depending on your preference.
Here, we'll use the moving average indicator to provide a solution.

For example, the current candlestick chart has a single direction, but the moving averages for each period are inconsistent: on the 55-unit moving average, the daily, 30-minute, and 15-minute charts are all pointing upward, while the 3-minute and 1-minute charts are pointing downward. In this case, which moving average direction should we use to trade?

According to the principle of only entering a trade when the moving average and candlestick chart align, our trading cycles could be: long on the daily chart and short on the 1/3-minute chart.
If you're taking a long position on the daily chart, that's correct, but you can also short within the 1/3-minute period.

![12.jpg](https://moer.si/usr/uploads/2025/09/3155297203.jpg)

From a short-term upward perspective, the formation of a 1-minute trend will inevitably lead to a reversal in the 3-minute chart.

When the 3-minute 55-day moving average turns downward and forms a trend, the 1-minute fluctuations can be ignored.

Furthermore, once a trend forms in the 3-minute chart, a turning point will inevitably form on the 5-minute chart.

A trend in the 5-minute chart will inevitably lead to a turning point and trend reversal in the 10-minute chart.

Once a turning point and trend form in the 10-minute chart, a turning point will inevitably form in the 30-minute chart.

![13.jpg](https://moer.si/usr/uploads/2025/09/30841802.jpg)

Here, after the 30-minute turning point forms and breaks through the 55-minute moving average, a 30-minute downtrend is likely to occur. Since no downtrend has formed recently, the daily moving average is still upward, while the K-line is consolidating downward.

Looking at the entire moving average system, from the formation of a trend at the 1-minute turning point to the reversal of the 3-, 5-, 10-, and 30-minute moving averages, the best strategy is to hold short positions.

However, there are actually rebounds in between. After the 5-minute trend forms, the 3-, 5-, and 10-minute moving averages and the K-line diverge for a period.

![14.jpg](https://moer.si/usr/uploads/2025/09/963464310.jpg)

When there's a conflict between the 3-, 5-, or 10-minute moving averages, if you're a long-term investor, you can ignore the fluctuations and hold a short position, just like holding a long position on the daily chart and a short position on the minute chart.

If you're a short-term investor, an upward trend will form in the 1-minute chart. In a market with conflicting 3-, 5-, or 10-minute moving averages, you shouldn't hold a short position, based on the principle of not entering the market when the two lines are in conflict.

![15.jpg](https://moer.si/usr/uploads/2025/09/4205279919.jpg)

In fact, as can be seen above, multi-period moving averages differ in that the smaller period gradually influences the larger period. When the smaller period rises, the larger period falls, or when the smaller period falls, the larger period rises, or when there's a pullback or reversal, all of these things begin with the smaller period. When trading, do you often wonder: if the daily chart is bullish, but the 1-hour chart is bearish, how should we choose to trade? Should we prioritize large or small positions? This is a common situation, and I'll share my own understanding.

The first concept to understand is trend.

Trends are directly related to cycles; in other words, discussing trends without considering cycles is meaningless.

Thus, when asking others for advice, avoid asking questions like, "What's my outlook for gold today?" It's not that they don't want to answer, but rather that such questions are unclear and difficult to answer.

Because trends and cycles are related, it's reasonable to see different trends in each cycle.

There are currently two different understandings of cycles: one is to prioritize large and small positions; the other is to prioritize small and small positions.

Let's analyze the logic behind these two approaches.

The first approach: prioritize large and small positions, using large cycles as the basis and small cycles as a supplement.

The main rationale is that large cycles provide a better sense of trend than small cycles.
The trend in the larger cycle doesn't change easily, and there aren't frequent shifts.

The trend is relatively stable, and leveraging the characteristics of the larger cycle in conjunction with smaller cycle trading can indeed increase the probability of successful trading to a certain extent.

The key point is that the larger cycle trend isn't easily shifted.

While it's not easy, it can still change. Moreover, by the time the larger cycle trend changes, price action has already progressed for a while, and the positioning may not be optimal.

Or, in other words, the smaller cycle already shows a very good trend.

However, failures can still occur during trend shifts.

For example, the price may still be in an upward trend in the larger cycle, but is currently in a correction phase.

During this correction phase of an upward trend, it's unclear whether the correction is a rebound or a reversal.

In the smaller cycle, the trend has already changed.

The second approach: Focus on the cycle you choose to trade in, regardless of the larger cycle.

The key point is that price action is the same in both larger and smaller cycles.

The shift in long and short positions will definitely be reflected on the price chart.
The advantage is that you can seize market reversals early, as small-cycle reversals gradually grow into large-cycle reversals, allowing you to capture the majority of market profits.

However, the disadvantage is that it can lead to frequent trading.

If there are too many signals of trend reversals in the small-cycle, you will inevitably experience multiple long-short swings.

If you primarily use the small-cycle, you must rely on these signals. Frequent trading will naturally reduce your chances of winning.

My trading strategy is to identify small-cycle levels that align with the larger trend, even when the price has not yet reversed and has retraced to the turning point.

Example: Euro Price Chart

On the daily chart, the Euro is still in an uptrend, and the price is approaching the trend reversal point. At this point, you need to identify a short-to-bull signal on the smaller 1-hour chart and enter a long position.

![16.png](https://moer.si/usr/uploads/2025/09/2813576866.png)

To summarize: Conflicting trends between the macro and micro cycles is a common problem.
So how do you proceed?

1. When the macro cycle trend is upward, but there's a significant amount of room for price to retrace to the long-short transition point, follow the micro cycle trend.

When the micro cycle transition has already occurred, follow the micro cycle trend.

![17.png](https://moer.si/usr/uploads/2025/09/4072697129.png)

2. When the macro cycle trend is upward, there's been a prolonged pullback, and the price is approaching the macro cycle's bull-bear watershed, look for long opportunities in the micro cycle.

![18.png](https://moer.si/usr/uploads/2025/09/3467308133.png)

Naturally, no matter what approach you take, there's always the possibility of failure.

No trading strategy is 100% successful.

My trading approach differs from the average. The following insights are my personal trading philosophy. A few digressions are in order, but these digressions are also the essence of logic. Logic itself is that the larger can constrain the smaller. If the smaller contradicts the larger, the smaller will not exceed the larger boundary.

![19.jpg](https://moer.si/usr/uploads/2025/09/4112030413.jpg)

The essence of the market is the flow of capital. Strong capital is the big ball, and when it encounters weak capital, it becomes the small ball. This causes the price to redirect. When the small ball encounters the big ball, a test occurs. Weakness meets strength. Testing, where the strong meets the weak, is a guide. Remember this relationship first.

Let's talk about the research object.

![20.jpg](https://moer.si/usr/uploads/2025/09/3670473133.jpg)

As shown in the figure, different research objects yield different results. Applying this to the market, let's take the 1-minute and 60-minute cycles as examples. If you study the 1-minute candlestick trend and use 1-minute analysis to place trades, your analysis must be within that cycle, and your current entry must not exceed the 60-minute risk. Therefore, any trades placed within this 1-minute cycle must not exceed the 60-minute risk. The candlestick pattern, however, is not the same as analyzing the 60-minute candlestick. If you analyze the 60-minute candlestick, you don't need to deal with the 1-minute candlestick fluctuations. This is a hierarchical constraint, and it applies to any environment or industry.

Few people analyze 1-minute fluctuations in trading, and the same applies at a different level. The same principle applies to analyzing 60-minute and daily candlestick patterns. Suppose you're bullish on the daily chart, but the 60-minute candlestick has several confirmed short positions with clear target levels. This is a simple situation. It's just a fluctuating bullish market. Trade both long and short positions. Manage your targets and risks. Ultimately, hold long positions. Identifying the direction and seizing trading opportunities are two different things. You'll often find that a day's Regardless of the ultimate price direction, many people will choose different trading opportunities. However, no matter which one you choose, if you can profit from it, you're right. This also depends on your personal style. I often tell my students: When you can understand the entire market, you're just choosing, not deciding.

So, different timeframes can be handled differently, and it doesn't matter. Smaller timeframes can help you test the risks of larger ones. You can choose to grasp the ultimate direction, or not. Simplify the complex and avoid getting yourself bogged down. The key is to understand the risk boundaries of smaller timeframes. Staying within the boundaries of larger ones will have no impact.

Cycle conflict? In my opinion, cycle conflict doesn't exist. As long as you have a good understanding of market rhythms, it won't be a problem.

I believe the main reason for this problem is the influence of certain books and market analysts, such as those who believe in looking at the big picture and trading small.

However, trying to juggle multiple timeframes during trading can do more harm than good.

Trading should prioritize appropriateness. The more you consider, the more contradictions you'll encounter, and in the long run, your trading will become restricted.

Furthermore, experienced traders can easily discern the price structure of larger cycles through smaller cycles, eliminating the need to over-analyze larger cycle trends.

Therefore, I primarily trade based on the operating cycle, focusing on significant support and resistance levels for larger cycles.

①. Both large and small cycles have their own market structures.

Suppose the price rises from A to B. How many different price action patterns can occur? Most likely, it will occur in a fluctuating upward pattern. Since it's a fluctuating upward pattern,Similar price structures will inevitably appear, so both small and large cycles contain such structures.
Just like a small sparrow, it possesses all the necessary organs.
Small cycles can also perfectly reflect market structure.

If the large cycle is rising and continuously reaching new highs, then the small cycle will also be an upward trend, continuously reaching new highs. If the large cycle is rising while the small cycle is falling, it simply means that the price has hit resistance at a certain level above and there is room for a retracement.

Two situations may arise here. First, the retracement is merely a retracement.

If the trend remains unchanged, you can still use the small cycle to take contrarian short positions and capture small profits.

As long as the correction ends, the small cycle can also reflect it.

Second, if the retracement evolves into a reversal.

In this case, focusing on the operating cycle is more advantageous because you can detect trend reversals in advance and obtain a good position, which greatly reduces the pressure of holding a position.

②. Considering both large and small cycles may cause conflicts.

Why use the word "maybe" here? Because it is not suitable for traders who do not understand market structure well. When looking at multiple timeframes, it's difficult to choose when they conflict.
The daily chart is bullish, the 4-hour chart is bearish, and the 1-hour chart is bullish. Which timeframe should I prioritize? It's artificially confusing.

Trading itself doesn't require so many reference points; simply focus on a specific price chart. All market information can be reflected in a single chart.

This is also my view on cycles.

Take the gold chart below as an example:

We can clearly see that the overall trend of the gold daily chart is upward. Whether looking at the market structure or the moving average, the upward trend is unquestionable.

(I'll write more about trends later. Trend is a very important and often overlooked concept.) During this period, even if there was a significant decline, the trend remained unchanged.

![21.png](https://moer.si/usr/uploads/2025/09/2856268213.png)

However, in the 1-hour timeframe, the price has already formed a very clear bearish structure, and the top signal is very clear. At this point, you should still focus on the larger cycle trend.
Looking for a point to go long?

However, if we change our trading mindset and focus on the operating cycle, going long when a bullish signal appears and short when a bearish signal appears, wouldn't that be wonderful?

![22.png](https://moer.si/usr/uploads/2025/09/1228786686.png)

In summary, I believe there is no conflict between cycles. Trading should focus on the current situation.

My answer is simple: there's no need to worry about cycles between trends. Focus on the cycle you're trading in, and don't consider other cycles for now.

Reason one: When we trade, we want to understand as many price patterns as possible across multiple timeframes. This also reflects a problem with your trading philosophy, because deep down, you still harbor a desire to take advantage of every market trend.

Through this method, you hope to identify the so-called perfect entry point, so that the market will rise or fall as soon as you enter.

You want to exhaust all the trends within a cycle, but you also fall into the abyss of multi-cycle confusion.

Reason two: Most people who use multiple cycles only make their trading more confusing, not clear.

Especially when the trend of the larger cycle and the smaller cycle diverge, is the price reversing or rebounding? If you enter the market during a large cycle reversal, the price may have already moved for a long time and space; if you enter the market during a large cycle rebound, at what point should you enter the market? More importantly, without a fixed standard for judging rebounds and reversals, it is easy to misjudge the direction and become confused.

Reason three: Small cycles can also reveal the entirety of large cycles.

We all know that cycles are simply the financial traces left by prices over time.

The market itself has no cycles; prices fluctuate from opening to closing.

It's just that we add the concept of cycles to better observe the market. The price patterns of larger cycles can also be observed through smaller cycles, but smaller cycles take precedence over larger cycles.

Reason 4: Small cycles are also the completion of a trend.
That is, if a trend reversal pattern is consistent, then this pattern will also exist in smaller cycles.
For example, the beginning, development, prosperity, recession, and reversal of a trend can also be observed in smaller cycles.
In this case, it's best to focus on smaller cycles and follow their rhythm. Why bother considering other cycles?

The above are my reasons for considering multiple cycles.

Thank you, Secretary Dakang, for your invitation.
Different cycles simply offer different perspectives on the market.

People often ask me, "You seem to be trading well. Can you help me predict the future trend of gold? Is it a long or short market?" I always answer honestly, "I don't know."
People think I'm stingy, afraid that my trading secrets will be exposed.
In fact, I really don't know.

Why do I say that? For example, if I open the five-minute chart, gold is currently in a smooth upward trend, making it a good buy.

But if I open the one-hour chart, I see that gold is consolidating in a box.

Opening the daily chart, I find that the small-cycle rise is actually just a rebound from the daily decline, making it appear to be another downtrend.

The market appears different from different perspectives. How can I offer advice? Moreover, the market is uncertain, and current ups and downs are not indicative of future trends. Therefore, I think questions like how to interpret the market outlook are too basic.

Back to the original poster's question, what should we do when market conditions conflict across different cycles? I have two suggestions.

First, as I've explained, different cycles are just different perspectives. So, just choose one perspective. For example, if I want to trade short-term, I'll look at the five-minute chart. If I want to take a medium- to long-term approach, I'll look at the daily chart. As long as a signal appears in the cycle you're looking at, I'll enter the market. Similarly, I'll only look at that cycle for exits. With a fixed perspective, you'll have consistency, and trading becomes less complex.

Second, use filtering. We often hear the phrase "multi-cycle resonance entry and exit." This actually utilizes a filtering effect. Using a large-cycle filter is similar to the principle of "see the big and act small." For example, if you're trading with moving averages, and the small-cycle candlestick chart is below the moving average, but the large-cycle candlestick chart is above it, I wouldn't open a position. I would wait until both the large and small-cycle candlestick charts are below the moving average before I open a short position. This effectively utilizes the filtering of the large-cycle, helping you filter out the "noise" of the small-cycle.

Are you satisfied with this answer?

In trading, we often say that the large-cycle governs the small-cycle; the small-cycle won't end until the large-cycle completes.

This is equivalent to the large-cycle being the overall strategy. But now the question arises: how do we judge the large-cycle? If the judgment is wrong, does that mean that all actions taken in the small-cycle are wrong? This logic is correct.

After discovering a breakout in the large-cycle, observe for an additional day.

If the price continues to move in the direction of the breakout for two consecutive days after the breakout, it's a valid breakout and a safe buying opportunity. Of course, if you buy two days later, the price will have already changed significantly: the purchase price is higher, and the selling price is lower.

However, even then, because the direction is clear and the general trend is set, investors can still make significant progress, which is much better than rushing into the market.

The path is established, and the small cycle is the specific route.

That is, if the daily trend has not yet completed, the hourly chart will eventually continue to move in the direction of the daily line.

So, if we are preparing to enter the market, please check whether the previous cycle (the large cycle) supports it? Then check whether the next small cycle also supports it. This is the best way to filter your trading signals and significantly increase your chances of profit.

The small cycle market trends are aggregated into the large cycle trends.

If the small cycle trends show unusual behavior (the strength and intensity of the movement), it will give early indication of possible changes in the large cycle.

In other words, at certain times, the small cycle shows a unique trend that is opposite to the large cycle, and the trend is very strong, as reflected in the slope, the strength of the candlestick pattern, and the persistence over time, which may lead to a trend reversal.

If the overall trend remains unchanged, you should decisively increase your position when the market pulls back. If you do the wrong thing, a pullback is the perfect time to exit.

The 80/20 rule is an ironclad law of all things. 80% of my profits come from 20% of my trades, and 80% of my losses also come from 20% of my trades. Therefore, you can average out your losses and only take losses when you're down, but never take profits and exit when you're down. Be greedy when you should; without a few profitable trades, your account won't grow exponentially. Greed is not a sin; it just needs to be timely. Greed is like stop-loss orders; not everyone knows how to do it. If you do it right, then take profits, and taking profits is a higher art form. We'll discuss this topic again someday.

Each timeframe has a different trading strategy. For example, the hourly timeframe is suitable for short-term intraday trading, while the daily timeframe is more suitable for medium- to long-term trades.

Small timeframes are flexible, while large timeframes are stable.

This is their unique characteristic. This is reflected in the market: when a trend shifts, it will first shift from a smaller cycle, while the larger cycle often lags behind. However, once the shift is successful, the larger cycle is much more stable than the smaller one.

As you mentioned, "focusing on the big picture and then acting on the small" is a good strategy for situations where different cycles conflict, but this strategy can only be used when the trend is established on the daily chart.
For example, if gold is bullish recently, as long as the hourly chart sees a pullback, going long is not a big deal.
This is because the general trend is correct, and the fundamentals support this strategy.

Conversely, if this situation occurs at the end of a market, then using the "focusing on the big picture and then acting on the small" approach will obviously result in multiple stop-loss orders. At this time, market interpretation requires more than simply focusing on trend manipulation; trading strategies and trading techniques become particularly important.

To prevent the aforementioned late-stage market situation, I personally have a more effective trading strategy: Cycle Resonance.

Cycle Resonance means only making trades when certain conditions exist simultaneously in two or more of your reference timeframes. For example, if a top divergence occurs on the daily chart, and simultaneously, or even multiple times, on the four-hour, hourly, and other timeframes, while the daily chart is still bullish, caution should be exercised even when entering a long position. Instead, consider a reverse trade when these conditions, such as cyclical resonance divergence, occur. This offers a higher probability of success than a bullish bet.

I hope the above suggestions are helpful.

What I want to share today is a basic rule. The core premise is that we must recognize the importance of the trading timeframe. It is the most effective analytical method for tracking price changes, and it is extremely universal and applicable to all commodity and stock markets. Understanding your trading timeframe can greatly improve your win rate and is the first step to truly standardizing when to exit a trade.

Secondly, individual personality traits make it crucial for traders to choose the trading cycle that suits them. Although moving averages are rarely used as a trading basis these days, the underlying principles remain the same. These are fundamentals that must be mastered, especially for new traders entering the market.

How do large and small cycles relate on the same chart? What is the relationship between them?

Simply put, if the core trading chart is the hourly (60-minute) chart, then the direction of the hourly 20-day moving average represents the core of the hourly trend, essentially the "trend" at the hourly level. To follow the trend, avoid moving against the direction of the 20-day moving average of that cycle.

Similarly, the 5-day moving average on the hourly chart represents the 20-day moving average on the 15-minute chart! The 20-day moving average on the hourly chart is also the 5-day moving average on the daily chart.

At this point, everyone should understand how to interpret the relationship between the upper and lower cycles, what does it mean to follow the trend, and how to follow the trend.

If the trends of the current and next cycles coincide, the trend will be relatively smooth. This principle can be used to identify price breakout points in time, or critical points of price change.

You can even use the time frame to simply determine whether the market will experience volatility and take evasive action.

With this understanding, let's discuss a basic principle regarding time cycles: the larger cycle governs the smaller cycle; the smaller cycle won't complete until the larger cycle is complete.

While the larger cycle represents Zhou Ti's strategy, the smaller cycle represents the specific path forward.

That is, if the daily trend hasn't completed, the hourly chart will ultimately continue in the same direction as the daily one.

Will the next smaller cycle also support the trend? This will effectively filter your trading signals and significantly increase your chances of profitability, as you won't be holding counter-trend trades.

This question has been hanging around for a long time, and I haven't gotten around to writing about it. In fact, the trend revealed by K-line patterns across different timeframes significantly influences traders' judgment. Few claim that a single fixed-period K-line can be used to complete a trade. Whether long-term or short-term, heavy or light, combining K-line patterns across different timeframes can easily delineate the developmental ranges of cyclical market trends, providing a reference for different trading needs.

MaZhua likes to think from the ground up when discussing trading. I don't want to simply say that large cycles determine direction, while small cycles determine details, which is correct but useless. I'd like to share a few of my own thoughts on this topic, hoping they will be enlightening.

What is the essence of the K-line?

I think most people will agree that the basic unit of technical analysis is the K-line, and I won't disagree. Of course, some people, perhaps out of sensibility, prefer to use bamboo lines.

They analyze market trends down to a single K-line/bamboo line, and that's it.

But have you ever considered what the K-line/bamboo line is in essence? Are they the fundamental particles of the market world? No, the consecutive trading prices that appear one after another are the fundamental particles of market trends. K-line/bamboo-node patterns are merely sampling specimens within artificially defined time periods, and each time period only samples four points: the start, end, highest, and lowest. Even if the market rages wildly during that timeframe, once the time is up, the K-line/bamboo-node pattern will reduce it to a cold, cold stick composed of these four points.

Let me propose another concept, one that people use daily without realizing it: market trends develop extremely unevenly along the timeline. Market trends never reach the same level within the same timeframe. It's common for the market to suddenly exceed the average daily level within five minutes. Therefore, when we use fixed time intervals for sampling, we lose a great deal of market development detail. There are ten thousand possible paths from the lowest to the highest point of a K-line, but it can't tell us even a single one.

![23.png](https://moer.si/usr/uploads/2025/09/3020218354.png)

For the first of the three charts, I found two weekly candlesticks that are almost identical. Their daily charts The two are quite different. If you follow the trend and go long at the end of the first Monday, you'll suffer a miserable loss the next day. However, if you follow the trend and go long at the end of the second Monday, you'll have a comfortable week. This is a classic example of how K-line charts overlook market details.

Market and Cycles

In MaZhao's theory, there are two concepts for long and short cycles. The first is the length of the trading cycle. Whether you're trading long or short, the length of time you hold a position. For example, if you want to capture 500 pips of market momentum with a single position, it's probably impossible to do so with intraday trading. You'd have to consider holding the position for three to five days, making a daily intermediate-term short-term trade. The second is the duration of the market trend. This refers to the duration of the trend that aligns with the trader's system. For example, if you use highs and lows as the criteria for determining a trend, the duration of a bull market before reaching lower highs and lower lows is the cycle of that bull market. There are long-term and short-term trading strategies, and there are long-term and short-term trends. You can engage in short-term arbitrage in long-term markets, or you can look for the most favorable long-term opportunities during short-term pullbacks. Market conditions exist objectively; it all depends on how participants operate.

![24.png](https://moer.si/usr/uploads/2025/09/1143284848.png)

In the second of my three charts, I randomly selected the current market conditions for a particular instrument. On the daily chart, it's a standard one-sided trend. On the 4-hour chart, it's still a standard one-sided trend, albeit with more details.

My point is that the market cycle is actually irrelevant to the candlestick chart level traders use. Regardless of the candlestick chart level, the starting and ending points of the trend, as well as its duration, remain unchanged. Furthermore, any market details displayed on the larger candlestick charts are also present on the smaller candlestick charts.

So, trends in different time periods conflict with each other? That's a false proposition!

Naturally, the cycles the questioner is referring to are artificially divided candlestick-level cycles at fixed time intervals, not the single-cycle or market cycles mentioned by Ma Zhua. However, I can also say that the idea that trends between different cycles conflict with each other is a false proposition! Market trends at different levels of cycles do not conflict with each other, nor does one dominate or determine the other. The truth is: short-term market trends can disrupt long-term trends, because reverse trends also develop from short to long. Alternatively, short-term market trends can also confirm long-term trends, because trends at any level of cycle develop in a repetitive, wave-like manner.

Sometimes, short-term market trends not only form their own trends but also disrupt long-standing long-term market trends, which happens frequently. However, in most cases, short-term market trends do not develop enough to disrupt long-term trends and begin to reverse, with the market then moving in the direction of the long-term trend. Compared to the original long-term trend, these short-term market trends can only be called pullbacks and rebounds, not trends, and therefore there is no conflict or non-conformity.

Figure 3 of the Powerful Composition (omitted). Therefore, it is crucial for traders to develop their own trend model, clearly understanding when a trend will be broken and when it can be strengthened. Only in this way can traders maintain a clear direction and a firm conviction in the ever-changing market, avoiding drifting with the tide.

No market ever rises (or falls) forever. Market trends are built up layer by layer through fluctuations. Therefore, there will always be ups and downs, but ultimately, the market will move in the same direction.

Trend trading is best done by "looking at the big picture and trading the small." Larger cycles are more trend-oriented, while smaller cycles may provide more precise entry points.

Through market fluctuations, major players acquire more chips (and eliminate those who are less resolute), thus initiating a longer trend, but the overall trend remains unchanged.

Thus, we often see the market fluctuate, and those who lack a good analysis and firm conviction about the trend will inevitably be eliminated in these fluctuations.

This is why, even when the market is clearly rising in the larger cycle, it is always falling in the smaller cycles, which discourages many investors from buying.

Naturally, to maintain the overall trend, the convergence of the smaller and larger cycles is crucial.

Thus, once the larger trend is confirmed, divergence between the smaller and larger trends presents a better entry point.

These "violations" are simply reactions from investors with differing opinions. Once they have played out, or once everyone has come to agree with the larger trend, the smaller cycles will revert to the same trend as the larger cycle.

Although smaller cycles do have their share of false signals, we should search for smaller cycle signals within the framework of the larger cycle trend.

In other words, if the larger cycle is bullish, we should only look for bullish signals from the smaller cycles. This way, even if there are false signals, the strength of the trend will help you turn the tide.

What does it mean when trends diverge between different cycles?

This is simple. In trading, we often encounter divergent cyclical trends within the same commodity. For example, gold may be up on the weekly chart but down on the daily chart, or even down on the monthly chart. This is a divergence of trends.

In fact, such situations are not unfamiliar to us in our daily lives. For example, we all know that the Yellow River flows from west to east; this is the major trend. However, the course of the river is not a straight line from west to east, but rather a series of twists and turns, sometimes even flowing from east to west. This is the minor trend.

We can see that although the minor trend contradicts the major trend, it ultimately does not hinder the Yellow River's ultimate eastward flow.

So, returning to our trading, how should we deal with the problem of conflicting trends between different cycles?

![25.png](https://moer.si/usr/uploads/2025/09/347700302.png)

At this point, we must not only clearly distinguish between the major trend and the minor trend; we must also understand whether our trading cycle is long-term or short-term.

If you're investing long-term, your best strategy is to "follow the broader trend and go against smaller trends." For example, if you're bullish in the broader cycle and bearish in the smaller cycle, then you should buy on dips.

If you're investing short-term, forget about the broader cycle; simply follow your own cyclical trends.
As the saying goes, focus on the cycle you're trading in, regardless of the broader cycle.
The key point is that price behavior is the same regardless of the broader cycle, and the shift from bullish to bearish will be reflected on the price chart.
Although a reversal in the smaller cycle will gradually develop into a reversal in the broader cycle, since your trading cycle is primarily short-term, if you "follow the broader trend and go against smaller trends" at this time, it's very likely that the broader reversal won't occur by the end of your trading cycle.

The conflict between broad and narrow cycles is a normal market phenomenon. If you're trading short-term, you'll naturally focus on the smaller cycle.
However, there are still many challenges in actual operation. For example, you might have a clear idea of the direction of a major cycle, but what specific stage is it in? Is it early or late?
The same applies to minor cycles.
When making decisions, you also need to consider the profit-loss ratio and overall market sentiment.

In fact, the trading logic for major and minor cycles can be simply summarized into two scenarios.

One is that the accumulation and transmission of changes in the minor cycle leads to changes in the major cycle.

In this case, the minor cycle is the primary focus in trading, with other major cycles serving as supplementary. When a conflict arises, reduce your position; when the cycles positively overlap, increase your position.

The other scenario is that the major cycle dominates the minor cycle.

In this case, the so-called conflict no longer exists.

For example, if you're long in the major cycle and the minor cycle is a bearish signal, don't trade.

If a bullish signal appears in the minor cycle, adjust your position based on the signal's quality, including handling false signals.

In actual trading, the latter scenario applies to long-term traders.

For example, during the recent bull market in the ChiNext, trend traders would be safe above the 120-day moving average. Specifically, if the price falls below the 60-day moving average, you can enter the market.
This is even if key events such as the recurring trade war and the COVID-19 pandemic affect fundamentals.

![26.jpg](https://moer.si/usr/uploads/2025/09/323612871.jpg)

Therefore, when conflicting signals are emitted from different cycles, there is no one-size-fits-all solution. The optimal solution lies in combining your own trading habits.

Cyclicality refers to the wave-like or oscillatory movements around the long-term trend in a time series.

Accurately extracting cyclical information not only reveals patterns in current data and can be applied to relevant scenarios, but also allows for prediction of future data trends.

This is a fundamental element of time series research.

Visually inspecting a time series chart makes it easy to determine whether the data exhibits cyclical characteristics, but it is impossible to determine the exact duration of the cycle, and this approach becomes ineffective once the number of data sets reaches a certain level.

Indicator Examples:

No technical indicator is 100% successful in this market, and the MACD is no exception.
The necessary conditions for a divergence to form are: rapid (trend) - deceleration (bluntness) - reversal (countertrend).

However, if the market moves in this way: rapid (trend) - deceleration (bluntness) - reacceleration (trend continuation),

In this case, the divergence disappears, and the structure disappears.

Unchanging rules regarding trading time periods:

1. Small cycles must respect large cycles, and small structures must respect large structures.

To put it simply, if a daily top structure forms after a few days of decline, followed by a 5-minute bottom structure, then we must respect the large-cycle daily top structure and the downward trend, and not try to catch a 2-hour rebound.

2. The resonance of structures across various cycles greatly enhances the effect.

That is, if the same structure appears simultaneously across multiple cycles, the success rate of this structure is greatly increased. For example, if the MACD of the 15-minute and 30-minute periods shows bottom blunting, and the bottom divergence structure of the 5-minute period is formed, it is likely to cause the divergence of the 15-minute and 30-minute bottom structures, forming resonance. Then this rebound will not be a span of 2 hours, and we should look further.

Authored by moersi. Please keep the original link when sharing: How do you handle the conflicting trends between different timeframes?
This is not investment advice, and we are not liable for any losses.