This time we will discuss about the Time Frame (TF) and how to choose the appropriate TF
Look to the right of the chart. There specified time frame of the chart. There are plenty of choices time frame provided by the trading platform, ranging from 1 minute, 5 minutes, 15 minutes, 30 minutes, hourly, 4H, daily, weekly to monthly. Why time frame to be things that need attention?
Mmm ... let's say ... if we do technical analysis, we do not actually grouping the data as a basis for making such an analysis. Now, grouping the data here are based on time, so on the basis of groupings at different times, we get the results of analysis can also be different
Chart with 5-minute time frame, for example, shows the price movement of a pair with a grouping of data every 5 minutes. Chart with a time frame for hourly shows price movements by grouping data pairs per hour. So forth
Grouping the data in this time frame will be obvious and more easily understood if you use candlestick chart type. Try you hold the cursor on each stem candlestick, it will come out information about low prices, high, open, close and volume of transactions at a certain time span. Well, all data were grouped according to time frame chart. That is, if the chart is for example using a daily time frame, so that appears in the information in each bar candlestick is the price low, high, open, close and volume of transactions on the day / date
Well, because the nature of price movement which is always dynamic pair (up and down) every time, then maybe the trend (direction) movement in a different time frame will be different. For example, could be a trend on the daily time frame rise, but if the trend seen in 5-minute time frame at the same time being down. That means, on the day the views from the previous days was the price tends to increase, so if we see a trend in the daily time frame appears to rise, but in the last few instance in the final 20 minutes was decreased so that when we look at time frame 5 mins visible trend down.
At this point hopefully you've begun to understand, that the conclusions can be drawn from the observation chart in the same pair at a different time frame may be different
Frankly, I am often amused when listening to conversations between traders in a chat room ...
There was a trader who said ... "well, GU rose up ..." but another trader said, "up how? clear down .... " how can different huh? Hehehe ... I think both of them observing the chart with a different time frame, so the conclusion that they take on the trend movements of the same pair to be different
You might then wonder: well, then ... time frame for how dong the most good? Hehehe ... I can not say one more good time frame other than the time frame
Maybe while I can explain that, in general, usually a trader will choose the time frame in accordance with their trading type.
Judging from how long they'd hold a position of from open until close, traders usually classified into:
? scalper is a trader who tend to engage in open-close the transaction within a short time frame with low pips target acquisition. Traders of this type tend to use a chart with time frames ranging from 1 M to 30 M.
? Day traders are traders who used to do open-close the transaction within the time span of a day. They usually choose the time frame between the hourly to daily.
? Swinger is a trader who usually do open-close position in daily to weekly time frame, even a matter of months. Well, they are accustomed to using time frames 4H, daily to monthly.
The above figures should be used as a benchmark does not ... in practice, there is also Swinger traders who use time frame for 15m at certain times. I can only recommend, try, try yourself observing the various time frames to find which one best suits your trading style