TEST YOUR SKILLSđđ
Hello everyone , In my recent post knowledge test :01, many of you who saw the chart predicted a downtrend, but I want to add two other charts for the same coin for your reference ,Before reading ahead , Check the below charts and tell which position you would take on these charts, would you go long or would you go short?
Choosing the correct position at the correct time is the greatest challenge for a trader, Once you have checked the charts and decided your positions, most of you will have decided to go short on the first chart and go long on the second and third ones. But as you observe carefully you can see that all the 3 charts are not of a different coin, taken at a different time , instead the charts are of the same coin taken at the same time ,but with different timeframe ,the first one is an 8 hr time frame ,where most of you would have gone short without second thought, the second chart provides a 3 day view of the chart where most of you would think of never entering this trade or going long, and the third chart is of 1 month timeframe which most of you would opt for a long position and lose money irrespective of any position.Now with this example we need to clearly understand that timeframe plays a crucial role in analysing the chart, the same chart can appear in different ways with different timeframes, this is a perfect example of our own eyes deceiving us. We should always be aware of the trade and the timeframe we choose to trade with ,this can make you successful and prominent trader in the long run with consistent profits.
Hope you all learned something new, if this post helps atleast one person to learn something new and avoid making losses, I would be more than happy to post again.
Let me know in the comments how this was helpful to you.
Good luck mates!!!
