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:
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 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.
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.
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.