profit2016
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Choosing a timeframe depends on two things:
Whether you are a long-term, short-term or intraday trader.
What is your holding period.
Here are typical timeframes that are used by different types of traders:
Long-term: Weekly and Daily
Short-term: Daily and Hourly
Intraday: 1 hr and 15-min, 30-min and 5-min, 15-min and 3-min
As shown in the above examples, it is always a good idea to use 2 timeframes. The longer timeframe is used to get an overall picture and strategy and the shorter timeframe is used to make the final trade.
Why is the holding period also important? If you are an intraday trader and your holding period is 2 hours or less, you have to use smaller timeframes like 15-min and 3-min, you cannot use 1-hr and 15-min as it would be too slow for you to exit if you used higher timeframes.
Whether you are a long-term, short-term or intraday trader.
What is your holding period.
Here are typical timeframes that are used by different types of traders:
Long-term: Weekly and Daily
Short-term: Daily and Hourly
Intraday: 1 hr and 15-min, 30-min and 5-min, 15-min and 3-min
As shown in the above examples, it is always a good idea to use 2 timeframes. The longer timeframe is used to get an overall picture and strategy and the shorter timeframe is used to make the final trade.
Why is the holding period also important? If you are an intraday trader and your holding period is 2 hours or less, you have to use smaller timeframes like 15-min and 3-min, you cannot use 1-hr and 15-min as it would be too slow for you to exit if you used higher timeframes.
