TIMEFRAME FOR TRADING!
I think it's time to explain something very basic when trading and that is the timeframe chosen for the analysis.
Briefly, the market is fractal and moves in waves, that is, seen in 5 minutes the price develops its respective waves and setbacks, which are contained in a larger wave, for example in 1H.
Why is it important?
-Small timeframes can have opposite trends to larger ones and vice versa. We can see a bearish trend in a 1H timeframe, but in the daily timeframe the trend is bullish.
-The important thing is when both trends are synchronized and go in the same direction, because it allows us to join a movement in a finer way.
-Changes in smaller timeframes can affect larger ones.
On the other hand, and what I want to focus on is that not all time frames are useful:
-I see many people posting 1-minute and 5-minute charts stating "Pepe is super bullish"; "NEIRO is flying"; "WLD is bleeding out", etc...
What we have to understand is the validity of each time frame:
A 1-minute chart completes its phases within 1 to 2 hours; A 1-hour time frame completes its phases in approximately 1 day at most; 4-hour charts can extend over several days; daily charts take weeks to develop...
So, if you want to know what is happening or what may happen tomorrow, choose the appropriate time frame. -Don't say we are bearish because we are looking at the 1 Minute time frame, where the largest movement does not reach 1%
And each analysis done in different time frames is operated differently:
1Min Scalping at +30X
15min and 1H intra day -30x
4hs Spot or futures with low leverage
Daily for spot and long runs, futures at few X
How long should we hold the trade? Likewise, the lower the time frame, the less time a position remains open
The crucial thing is to be consistent and operate according to the rules of each time frame
Crypto Citizen says goodbye!
