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What timeframe to choose?

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One of the main reasons why traders can’t trade profitably is the wrong choice of timeframe. Newcomers want to get rich quickly and begin to trade on small timeframes, such as 1minute or 5 minutes. Then, they lose because they are not choosing what they need.

When we begin to trade, we must determine our choice of timeframe. We start with 15 minutes, then try 5minutes. Later, we can try the hourly, the daily, and 4-hour charts.

In the end, after many mistakes, we settle on the1-hour chart, as we feel much more comfortable. This time period is longer, but not too long, and has more trading signals, although they do not appear often. We have more time to analyze the market, and we don’t feel trapped.

Time periods are usually divided into three groups:
• Long-term
• Short-term
• Intraday

Which one is better? It all depends on the individual trader.

Here is a comparison of the three types to make it easier to determine which will be best for you:

Long-term
Long-term trade is based on the daily and weekly charts. Weekly charts provide a long-term perspective and help determine the entry point for traders who trade on the daily charts.
Options are open from several weeks to months or even years.
Advantage: No need to watch the market during the day.
Disadvantage: Usually one or two profitable options for the year, which requires patience from the trader. It also requires a large deposit.

Short-term
Traders who trade short term use a1H chart and use options with expiries from a few hours to a week.
Advantage: More opportunities for trade.

Intraday
Traders who trade intraday use 1 minute or 5 minute charts.
Options expiry during the day, from 1 minute to 15 minutes.
Advantage: Many opportunities for trade.
Disadvantage: Psychologically, it’s more difficult.

The choice is up to you, but in my opinion, you must use all timeframes. The longest timeframe helps to determine the general trend, the middle helps with the intermediate trend, and the shortest helps with short-term trading.

Tell us what timeframe you use and why you like it.

Comments

shortex's picture

Forex traders use long-term. Binary options traders use short-term. I use 1 hour timeframe. 1 day to determine the general trend.

shortex
riksa18's picture

Considering the time frames is an important aspect to keep in mind while trading binary options. It is a fact that getting richer over the night is a dream of millions and it might be the reason that many people join trading. But earning money through trading is bit hard as it involves a lot of efforts.

So anyone wishes to start trading career should not ignore money management factor and should also try to trade on medium term or longer timeframes. Trading on short term expiry is also rewarding but it is not a recommendable option for newbies.

It is best to download MT4 to analyse the trends on the charts before making any decisions. I usually trade with Optiontrade and they recommend their clients to download MT4 from their hotforex site.

riksa18
Vizory's picture

I would recommedn getting H1-D1. I prefer H4, it's really convenient. There are 6 candlesticks a day and you can keep an eye on the general situation.

Vizory
Prime's picture

Well, choosing the time frame is quite a task. Although usually it all depends on the type of trading you prefer.

Prime