Article no 5
Charting On Different Time Frames
One of the key concepts in technical analysis is the use of different time frames. Using different time frames can provide a better perspective on an asset and can be used to create a more complete picture of its potential price movements.
The technical analysis time frames shown on charts range from one-minute to monthly, or even yearly, time spans. Popular time frames that technical analysts most frequently examine include:
Here are some common time frames used in technical analysis:
1-minute chart: This chart shows the price movements of an asset over a one-minute period. It is commonly used to identify short-term trends and potential entry and exit points.
5-minute chart: This chart shows the price movements of an asset over a five-minute period. It can provide a broader view of short-term trends and can be used in conjunction with 1-minute charts to make trading decisions.
15-minute chart: This chart shows the price movements of an asset over a 15-minute period. It can be used to identify longer-term trends and potential support and resistance levels.
30-minute chart: This chart shows the price movements of an asset over a 30-minute period. It is similar to the 15-minute chart, but provides a wider view of the market and can be used to identify longer-term trends and potential support and resistance levels.
1-hour chart: This chart shows the price movements of an asset over a one-hour period. It is often used to identify longer-term trends and potential support and resistance levels.
4-hour chart: This chart shows the price movements of an asset over a four-hour period. It is similar to the 1-hour chart, but provides a wider view of the market and can be used to identify longer-term trends and potential support and resistance levels.
Daily chart: This chart shows the price movements of an asset over a one-day period. It is commonly used to identify long-term trends and potential support and resistance levels.
Weekly chart: This chart shows the price movements of an asset over a one-week period. It is similar to the daily chart, but provides a broader view of the market and can be used to identify long-term trends and potential support and resistance levels.
Monthly chart: This chart shows the price movements of an asset over a one-month period. It is commonly used to identify long-term trends and potential support and resistance levels.
The time frame a trader chooses to study is usually dictated by the individual trader's personal trading style.
Day traders, those who open and close positions within a single trading day, prefer to analyze price action on shorter time frame charts, e.g. B. 5-minute or 15-minute charts.
Long-term traders who hold market positions overnight and for extended periods are more likely to analyze the market using hourly, 4-hour, daily or even weekly charts.
Price movements that occur over a 15-minute time span can be very important to day traders looking for a way to profit from the price swings that occur throughout the trading day. However, the same price movement viewed on a daily or weekly chart may not be particularly important or indicative for long-term trading purposes.