Time periods are one of the most important tools used to analyze the market technically in the world of trading. But these periods are divided into short-term and long-term, and each of them has a use and need in trading. Today, let us learn about the short-term time periods that are best for trading crypto on a daily basis.Â
In this article
What are short term time frames in crypto?
Time period 15 minutes
Time period 1 hour
Best short term time frames ever
Time period: 1 day or 24 hours
What are short term time frames in crypto?
Time frames in trading are an important tool used by the trader to analyze the market. It is known that the trader relies on Japanese candlesticks to read the movement of financial assets in the market. Therefore, the different time frames determine the period of each candle. For example, the weekly time frame means that each candle is equal to a week of price movement, and therefore this is a long-term time period. For example, the hourly time frame means that each candle is equal to an hour of price movement, and therefore this time period is suitable for short-term analysis.
In this article we will talk about four short-term time periods in trading, which are:
15 minutes per candle.
One hour per candle.
4 hours per candle.
24 hours per candle any day.
Please note that these time periods are only suitable for entering into short-term trades i.e. trades that may last for several days at most.
Time period 15 minutes
The trading world is full of different time periods. There is a time period of one second, meaning that each candle is equal to one second. That is why you should choose short-term time periods very carefully so that you can read the market accurately. Based on this, we believe that the shortest time period that can be relied upon in daily trading is the 15-minute time period. This is because the crypto market is known for its very high volatility, so you cannot rely on any time periods shorter than this.
Whales and large investment bodies always seek to control the market by controlling short-term time periods. This happens by pumping a very large amount of liquidity into the market in order to deceive traders and obtain their capital. Even the 15-minute time period is not recommended to be used alone, but we recommend using it to analyze 1-hour and 4-hour candles and find out the details that happened.
The best time to use this candle is usually when executing a trade. If you want to enter a short-term buy trade, the best time to do so is after you find several large red candles on the 15-minute level, as this is usually a sign of a price rebound.
Time period 1 hour
One of the most popular time periods in the trading world is the 1-hour period, i.e. one hour for each candle on the chart. This is because many traders seek to practice day trading in order to make a quick profit. For this reason, they rely on this short-term time period, thinking that it is very accurate. But in reality, especially in the world of crypto, one can never rely on a 1-hour candle to predict market movements. This is because whales constantly seek to control these candles very easily.
That is why we believe that the best use of this candle is to analyze the 4-hour candles more closely and to know their details. For example, if a 4-hour candle closes as a hammer, you may open the 1-hour period to know more details about it. For example, you may want to know whether the sharp drop occurred at the beginning of the candle or at the end. Remember that each 4-hour candle is made up of four 1-hour candles. Therefore, reading these four candles gives you much more details about what happened in this time period.
Best short term time frames ever
Now we will talk about the most important short-term time periods ever, which is the 4-hour period for each candle. This period is very important, especially at the present time in crypto, because it is the shortest time period that can be relied upon in analyzing and reading the market. Most of the shorter time periods have become very easy to control and deceive traders with. That is why we prefer this period.
If you want to trade on a daily basis or practice swing trading, where trades may last from several days to several weeks, this time period will be very important for you.
For example, the 4-hour RSI for Bitcoin always represents a chance to form a local bottom whenever it drops below 20 points. This has happened several times over the years and all of them represented very good buying opportunities. Furthermore, the bottom formation is not confirmed by short-term time periods such as 15 minutes or an hour but by at least a 4-hour candle.
Time period: 1 day or 24 hours
Some may think that short-term time periods do not include the daily level, but in fact we consider the daily time period, i.e. each candle represents a day of short-term time periods. This is because there are 30 candles in each month on the daily level and seven in each week, and thus this is a lot of data that can help us analyze the market in the short term accurately and carefully.
This time period is considered to be somewhat more accurate than other short periods. The details of this candle can also be known through the short time periods that we mentioned above in this article, especially 4 hours. Buying at a time of severe decline on the daily level is usually the best move. As a general rule, the longer the decline is on a time period, the less risk there is. But for example, a decline on the 15-minute level is not sustainable unless there is actually a decline on this daily level, and then the 15-minute level is used to highlight more details.
As a general rule, analyze at the 4-hour and daily levels and then execute the purchase at the 1-hour and 15-minute levels for the best results.
