Time Frames in Currency Trading
Time frames in trading are the periods over which price data is displayed on charts. They play an important role in understanding market movements and making successful trading decisions.
Time frames are divided into three main types:
Short-term: such as 1-minute, 5-minute, and 15-minute charts, used for quick trades within the same day.
Medium-term: such as 1-hour and 4-hour charts, suitable for swing traders who hold trades for several days.
Long-term: such as daily and weekly charts, preferred by investors who focus on major trends.
Professional traders use multiple time frames to confirm trends and pinpoint entry and exit points more accurately. For example, a trader might look at the daily chart to see the overall trend, then use a smaller time frame to time the trade precisely.
Choosing the right time frame helps improve trading strategies and reduce risks.
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🔍 This is not investment advice; the market always involves risk, so think carefully and make your own decisions.