In this article, you will learn everything related to the different timeframes of the market, and you will understand what the term "Fractality" refers to, a concept that can sometimes be difficult to grasp especially when you are starting in futures trading...!
The first thing you need to know is that all timeframes are one and there is neither a better nor a worse... What happens in one timeframe is also happening in all the other timeframes, only that in each one it is represented in different ways...
"A fractal is a geometric objective whose basic structure, fragmented or apparently irregular, repeats itself at different scales"
You will need to refer to each of them according to what you need to know at each specific moment to carry out your analysis and be able to make the best possible decision...
Generally, the most commonly used timeframe and the one that in most cases will give you a more precise idea for making a decision is the daily timeframe...
However, you will often need to resort to smaller timeframes, such as four hours, one hour, or fifteen minutes, which will allow you to get a more detailed view of what is happening in the market...
Or also, to higher timeframes like a week or a month. In these last two, you will be able to have a more general view and a bit more long-term of the asset's price action...
Most of you may already know this, but I will explain it especially for beginners who are just starting out in futures trading...
In a monthly chart, each candle corresponds to 1 month, then that same candle of one month will be broken down into 4 weekly chart candles, then a weekly chart candle will be broken down into 7 daily chart candles, and a daily chart candle will be expressed in 6 four-hour chart candles and so on...
Often, unless you want to trade very long term, you should start your analysis on a daily chart, once you have made a decision, you should go down to a four-hour, one-hour, or 15-minute timeframe to execute your entry as accurately as possible...
On the other hand, you can also make shorter-term trades, a way of trading better known as Scalping...
In that case, you should also first observe the daily timeframe to identify what the primary trend of the asset is at that moment...
Within that primary trend, if you go down in timeframe you will find secondary trends, it may be that the price in daily timeframe is in an upward trend and in a smaller timeframe a downward trend is developing in the shorter term, remember that the market moves by impulses and corrections...
Surely it has happened to you that you see an upward movement on the daily chart, you place a buy order and immediately the price starts to go down, then you will say: but if the price was going up, what happened..?
This happens because in a smaller timeframe a downward trend was already starting in the shorter term or rather a correction within the same daily chart...
One thing you should keep in mind if you want to do Scalping is that you must open and close your trades in a very short period of time, especially if your trade is against the primary trend of a larger timeframe...
But if your trade is in favor of the primary trend of a higher timeframe, you could extend it for a longer period to achieve a greater profit....
As a final piece of advice, I wouldn't recommend using very small timeframes, like 5, 3, or 1 minute, especially in times of high volatility, because in those timeframes everything happens too quickly, and trading in them can be very stressful and requires a high degree of concentration...
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