Trend Analysis is arguably the most important area of technical analysis and is key to determining the overall direction of a security.Trends are based on the principle of higher highs, higher lows (for an uptrend) and lower highs, lower lows (for a downtrend). They can have different time horizons and be embedded within one another, like fractals. For example: an overall uptrend on the weekly timeframe can include a downtrend on the daily, while the hourly is going up. Multiple Time Frame Analysis helps traders to understand the bigger picture. Some trends are seasonal while others are part of bigger cycles.