Timeframes

Timeframes

  • Explain Timeframes starting from 5minutes to Months etc.
  • Timeframe and Candle correlation: β€œon the one minute chart, you see many more candles today then you do on the 5 or 15min chart. That is because each candle represents 1min of price movement data whereas if we switch to a 15min chart there’s only about 30 candles here for the entire day instead of 500. More candles isn’t always better, because some mico trends can trap you.”
  • Higher timeframes read Macro Trends
  • Lower timeframes read Micro Trends.
  • Analogy of Waves: Market on High timeframes show macro Wave zoom in on the large wave and you will find that the macro wave is made up of micro waves (lower time frames).
  • Importance of checking higher time frames: allows you to read the overall trend. Beginning of trading with the trend.
  • *Generally speaking if you are new to trading we recommend trading off of higher timeframes as it is easier to identify macro direction/trend rather than micro direction/trend. Starting with a 1hr,4hr and 1day chart as you get into trading you will be able to understand the basics of Overall trading movement and trend.
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