In the recent articles of SR Basics we have talked about some of the most popular charts types like: candlesticks, lines or even market depth. We also touched on the topic of logarithmic and linear scale. Next quite important topic to any trader are time frames.
When talking about time frames the easiest division is: High and Low timeframes.
You can divide them even more into: monthly, weekly and daily and hour/ minute time-frames. Day traders will use mostly short low time-frames and only sometimes high ones to get a broad overview of the market and or to check the general market direction. Of course trading the higher time-frames can be more suitable if trading is not your regular job and the time is limited (check out trailing stop loss in that case)
The very general outlook is that: high timeframe is a graph set for a week, a day, a few hours, minimum 1h. Otherwise, Low time frames are below this point: 1h, 30 min, 15min or even five minutes.
When looking at higher time frames the virtue is patience. In case of these most probably you will choose to buy and sell not often. It is often all about waiting and mastering the entrance place and keeping the funds for the best moment.
Low timeframes are often chosen by day traders and those who don’t have the patience to wait. The crypto market is pretty volatile even in the short time frames (that’s why we love it) so the situation on the chart can change dramatically within a few moments. In the low timeframe you will be more able to make decisions under pressure and to react quickly to changing values.
It really depends and you should try different ones yourself. As one of the most experienced traders in our teams says: It is not good to follow other people rules – if you do that most probably you will not earn by doing that.
We all have different characters, and different advantages of the characters so as a trader you have to always test yourself to find the best earning strategy.
As we said before it is important to find the time frame that fits you the best but don’t be stuck to just one time frame – using few of them will help you feel the trend better. Here are some combinations (just an example from the low to hight timeframe):