Have you ever wondered what a time frame is?
What are the benefits of the time frame?
How can I, as a trader, benefit from time frames correctly?
This article is for you as a beginner trader, to achieve gains based on your understanding of time frames and your commitment to executing trades correctly on each time frame.
First, the definition.
The time frame in general: - It is the time period during which the price moves from a lower level to a higher one, and from a higher level to a lower level.
Secondly: - Types of time frames.
1. Short time frames. They are (1-minute frame... 3-minute frame... 5-minute frame... 15-minute frame... half-hour frame...)
2 Medium time frames (1-hour frame... 2-hour frame... 3-hour frame... 4-hour frame... 6-hour frame... 8-hour frame... 12-hour frame.)
3. Long time frames. (1-day frame... 2-day frame... 3-day frame... 1-week frame... 1-month frame.)
Thirdly: - The benefits of time frames, each frame has its benefits as follows: -
1. Short time frames and their most important benefit is that they show us the fluctuations that occur during the specified time period, and the smaller the frame, the more we see the instantaneous fluctuations that occur during that period.
For example, in the one-minute frame, we see the formation of either bullish or bearish candles at the same time, and if we move to the 3-minute frame, the fluctuations start to disappear, until when we reach the half-hour frame, we see that they have somewhat faded away.
These frames can be used professionally by experienced and short-term traders who prefer to make quick trades by conducting rapid analysis and then entering relatively quick trades that do not exceed an hour.
2. Medium time frames.
These are the frames through which we see the price almost stable during each frame; the price movement appears to be almost stable as we move to a larger frame.
For example: - The hourly frame shows the price fluctuating slightly, and if we move to the 2-hour frame, it starts to disappear... until we reach the 12-hour frame where the price shows stability and we can predict the next movements every 12 hours. If an upward trend is shown, the trend will continue for a medium period, while monitoring other factors and integrating them with the frames, such as positive or negative news, volumes, the movement of moving averages, and their positions.
They are used by somewhat inexperienced people who prefer to open medium trades with less risk. Because it shows stability over a medium time period, combined as we mentioned with other factors.
3. Long time frames.
These are the time frames in which the price shows stronger stability and a clear direction, whether upward or downward. These time frames can be used by both experienced and beginner traders who prefer to make long-term trades that can last for several months. Of course, with little risk, they use small leverage that does not affect the liquidation of trades in case of a reverse rebound.
Finally.
Reading time frames correctly is extremely important for you as a beginner trader. Because it gives you a clearer picture based on your understanding and depth in it. By learning to read moving averages, volumes, and news. When these factors are combined, you can determine the overall trend correctly, and you can also enter more confident trades with the trend that appears whether upward or downward.
As a rule.
Do not risk all your capital. Do not risk money that you cannot afford to lose.
As economists say... do not put all your eggs in one basket.
I hope I conveyed the idea correctly.
