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The Most Recommended Timeframes to Trade On (Top Down Analysis)

Education
BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Hello traders. Here I would like to take my take on the best timeframes (personally) that I use to trade on. This can apply to all tradable assets - especially for cryptocurrencies.

Weekly Timeframe (1W): Usually one-week traders are known as longterm traders. Usually they are good at analyzing the market from a longer perspective and will usually have a portfolio that is heavily catered towards fundamentals, rather than technicals. They will hold trades from lasting from a week up to even months - and possibly up to years. The advantages to a weekly trader will be that you don't have to always watch the trade; however, it will take longer to realize profits - and that's okay by them. Many new traders tend to avoid this approach because it means longer periods of time before trades are realized. However, by many accounts, trading with a shorter-term (day trading) approach can be far more problematic to execute successfully, and it often takes traders considerably longer to develop their strategy.

One-day Timeframe (1D): These are also known as swing traders. These traders hold positions from days, up to weeks. The advantages for swing traders is that they are usually more geared towards longer term profits and is comfortable with holding a trade overnight. After the trend has been determined on the weekly chart (lower highs and lower lows, for example), traders can look to enter positions on the weekly chart in a variety of ways. Many traders look to utilize price action for determining the overall trend, but indicators can absolutely be utilized here as well.

1H - 4H Timeframes (1H, 4H): These traders are usually known as 'hybrid' intra-day, day, and even swing traders. These two timeframes are usually the best to use indicators as the provide quick data and more data to help learn the process of the larger scale timeframes. These two timeframes are the epitome of creating the larger picture. These traders usually understands the concept of how markets open and closes from a day-to-day perspective. They understand the exposures of 'fake-out' signals. These traders will usually realize profits or losses quickly. After a trader has gained comfort on the longer-term chart, they can then look to move slightly shorter in their approach and desired holding times. This can introduce more variability into the trader’s approach, so risk and money management should be addressed before moving down to shorter time frames.

The best time frame to trade an asset will vary depending on the trading strategy you employ to meet your specific goals. The diagram above shows the time frames used by different traders for trend identification and trade entries.

This is a part of my risk management series, so if you are interested in checking out my other posts, please check below!

Comments

Good post as usual!
+2 Reply
@Tazuko93, thank you!!
+1 Reply
Amazing analysis! Found some good ideas i've never thought before!
+1 Reply
XForceGlobal BulloTaurus
@BulloTaurus thank you very much !
+1 Reply
Nice educational marterial. 🐻‍❄️🙏😊😃
+1 Reply
XForceGlobal PolarHusk
@PolarHusk 🙏
Reply
daily camarilla H3... the projected range high was exact to the dollar. more accurate than fibs even. and believe it or not... that line was plotted 18 hours prior to it even hitting and triggering a selloff. cam pivots plot next daily weekly or monthly levels using the previous times frames price action. and the algos act accordingly. there is always a reaction even if not reversal. and these lines are static. don't matter what time frame you are on. those are the levels an the playbook is always simply clear... if one looks into how to use or read them. and for further confirmation the coming monthly pivot calculated in the low 17ks. and every untested monthly pivot the last two years has been magnetically struck. so it was the easiest intraday top catching short trade to the dollar... the cent. interesting stuff for those who want to level up beyond vague advice repeated a million times over for views. trade higher time frames. blah. manage risk. blah. these educational posts must makes y'all really think you guys are just so bright and clever. but even non traders know this kind of stuff. how about something... innovative that works. ;) i tease rough. no hard feelings. ^^
+1 Reply
Nice article as per usual.
+1 Reply
@DJC73, Thank you DJC73!
Reply
This has been explained in an easy to understand manner as usual.
+1 Reply
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