Trading Beginner Guide #01
Common Timeframes for Signal Analysis
1. Scalping (Short-Term Trades):
• Use 1-minute, 5-minute, or 15-minute charts.
• Suitable for quick trades lasting minutes to an hour.
• Look for rapid price movements and small, quick profits.
2. Day Trading (Intraday):
• Use 15-minute, 30-minute, or 1-hour charts.
• Ideal for trades opened and closed within the same day.
• Signals on the 1-hour chart are more reliable as they smooth out noise compared to shorter timeframes.
3. Swing Trading (Multi-Day to Weeks):
• Use 4-hour, 1-day, or 1-week charts.
• Focus on trends and larger moves. The 4-hour chart is particularly useful for spotting medium-term trends and entry points.
4. Long-Term Investing:
• Use 1-day, 1-week, or 1-month charts.
• Suitable for identifying long-term trends and resistance/support zones.
Why the 1-Hour Chart?
• The 1-hour chart is a sweet spot between short-term and medium-term signals.
• It’s less noisy than shorter timeframes but still offers enough detail for intraday trades.
• Use the 1-hour chart to confirm trends or breakout signals.
How to Combine Timeframes (Multi-Timeframe Analysis):
• Zoom Out: Start with a higher timeframe (e.g., 4-hour or daily) to identify the main trend (bullish or bearish).
• Zoom In: Use a lower timeframe (e.g., 1-hour or 15-minute) to find precise entry and exit points.
This approach ensures you’re trading in the direction of the dominant trend while fine-tuning your trades for better accuracy