#TradingAnalysis101
In trading, the choice of time frame (chart time) depends on the chosen strategy.
⏳ Scalping (5 sec - 1 min): ideal for quick trades with minimal fluctuations. Traders analyze 5-second, 15-second, or minute charts.
📊 Day trading (5 min - 1 hr): traders open and close positions throughout the day, using 5-minute, 15-minute, and 1-hour charts.
📉 Swing trading (4 hr - 1 day): suitable for analyzing medium-term price movements, focusing on 4-hour and daily charts.
📅 Investing (1 week - 1 month+): long-term investors analyze weekly and monthly charts, assessing the overall trend of the asset.
It is important to combine multiple time frames for a better understanding of the market. For example, a swing trader may look at the daily chart to determine the trend, and the 4-hour chart to find entry points.