Experts explained what timeframes are best for scalping, intraday, medium-term and long-term trading, and why it is important.
Changes in value in cryptocurrency and other markets are usually presented in the form of a chart, where the price of an asset over a certain period of time is indicated. This timeframe is called a timeframe, and it is considered to be the main tool of exchange trading.
Timeframes come in different intervals: minute, hour, day, etc. It is recommended to select them depending on the type of trading. There are no universal timeframes, and a trader needs to learn how to work with charts in all timeframes.
Scalping is defined as earning on fast oscillations of the price of an asset. The essence of this method is to close a large number of deals with insignificant profit, which eventually brings considerable income. It is recommended to use one-minute timeframe for scalping. It is also noted that trading in short-term timeframes takes a trader’s whole day and is accompanied by a fairly high psychological load, so it is better not to use this trading method for beginners.
Intraday trading
To keep track of the quotes movement in one-minute and 15-minute timeframes. According to him, such timeframes are good for traders who are going to close trades on the day they are opened.
Mid- and Long-Term Trading
Minute timeframes are not suitable for trading cryptocurrency in the medium and long term, because they are not informative in this case. For medium-term trading, it is advised to use hourly and daily timeframes. In the case of long-term trading, experts recommend working with daily and weekly timeframes to be able to make predictions for the long term.
Why it is important
Incorrect work with timeframes can lead to losses. According to the experts, traders often think that it is easier to make money on the short-term timeframe, as the chart moves quickly there. However, the higher the time frame, the better technical analysis works because there is less market noise on medium- and long-term timeframes.
