The Newbies, as novice traders, of course we still have difficulty in finding ways to choose time frames when doing technical analysis. But you know? It turns out it's very easy, you know!
You also must have a return expectation with their own amount when trading. Therefore, you finally decided to learn technical analysis and then use devices such as tradingview.
However, often lay traders are confused when looking at tradingview graphics which turns out to have a variety of time frames options (time frames). Starting from a matter of seconds, to monthly.
Confused, The Newbies are overwhelmed in choosing the right time frame when trading. However, now you don't need to worry anymore.
In this article, you can understand about time frames briefly and concisely, as well as the right way to choose time frames.
Get to know Time Frames in Trading
In the world of trading, time frames are a certain period of time determined by investors when observing the price movement of an asset.
Well, if The Newbies change the time frame in tradingview to 4 hours (4 hours). Then tradingview will display the price dynamics of the assets within the last four hours.
Likewise with other time options. If you choose a time frame of 1 day, Tradingview will also show data on the price movement of the asset in the last day.
The price movement of an asset in one time frame is certainly different from time frames . Therefore, as a trader it is obligatory to know how to choose time frame , so that later you will not regret after making a decision in trading .
How to Choose the Right Time Frame?
Before choosing time frame , The Newbies need to remember the following general rules.
"The longer the time frame chosen, the investor can receive a faster signal from the movement of the price of an asset. Vice versa. If the investor chooses a short trading time frame, then what is seen is only the 'vague' movement of asset prices. "
Therefore, you need to choose a time frame in trading using an approach called multiple time frame analysis.
The trick, you can start choosing time frame first to see the general trend of the price of an asset. From there, of course, you can see whether the price of the asset is really sloping, or is it actually going up.
Only after that, you can shorten the choice of time frames to determine the decision to enter or exit the market. This technical analysis is also commonly used by investors or novice traders.
How to choose time frame according to the type of trader
How easy is it, The Newbies? However, the next question inevitably arises. How do you know if a time frame is a short or long time frame?
Moreover, in Tradingview, there are lots of time frame ranging from seconds, minutes, hours, 1 day, 1 week, and 1 month.
Well, to answer that question, come back with your own type of trading style. Here are some ways to choose a time frame according to the type of trader .
1. Swing Trader
Traders who focus on making money from short movements in the price of an asset, often use time frame 1-week time frame to see short-term trends. A Swing Trader, usually expects to make a profit within a few days to weeks.
2. Day Trader or Scalper
A day trader who keeps looking at the price chart every 15 minutes. Generally, Scalpers use time frame 1 hour time frame for the short term. This type of trader usually hopes to get money on the same day, even if it is possible in a matter of hours or minutes.
3. Long Term Trader
Well, traders who focus on this weekly chart, usually use charts with a time frame of 1 month to determine the main trend. In addition, it is also a point of entry or exit from the market. This type of trader puts more hope in a large percentage number, even with a timeframe that can last for years.
Already answered, right? So, which trader are you in?
In essence, using multiple time frame based on trading , can make you more confident in trading .
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