Candlestick time frames in trading reflect price changes over a certain period of time. Choosing the time frame depends on your trading style (scalping, day trading, long-term trading) and your overall strategy. Here is an explanation of the relationship between the time frames and how to read them.
1. 5 minute frame
Usage:
Suitable for scalpers looking for small price movements to make quick profits.
It gives an accurate picture of the real-time movement of the market.
Reading:
Focuses on precise entry and exit points.
Its fluctuations are faster compared to longer frames.
It relies on indicators such as trend lines, nearby support and resistance.
2. 15 minute frame
Usage:
Suitable for day trading, as it provides a balanced view between short and long frames.
Helps identify trends over a shorter period.
Reading:
Used to confirm buy or sell decisions based on 5 minute frame.
Shows candle formations that indicate small reversals or trend continuation.
3. Clock frame
Usage:
Designed for investors who trade daily or every two to three days.
Shows intermediate trends that help understand the overall picture of the market.
Reading:
It reveals larger trends such as uptrend or downtrend.
It acts as a reference to identify strong support and resistance areas.
4. 4 hour frame
Usage:
Suitable for traders who rely on long-term trend analysis.
Gives a clear view of the major market trends.