Should I choose a short or long time frame

Most novices usually ask this question if they are to use a short or a long time frame. In the financial markets, choosing the right time frame for analyzing or gauging the market all depends on one trading goals, style, and risk tolerance and it is not something you want to get someone's opinion or permission first.

If you launch a chart and choose the available time frame you will get to notice the difference in the chart as the candlesticks are what usually charge. Like for example in a 5-minute chart, you might be seeing a bullish candle whereas in a 1-hour candle, it is a bearish candlestick that you will get to see.

Just as we have different categories of traders in the financial markets it is how these time frames are perfectly used.

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Scalping

Scalper traders are those who don't spend much time in the market as their target is to make little (small) profit and disappear from the market. For such people, it is 1 minute, 5 minutes, or 15-minute time frame charts this best for them.

If you are a trader who likes quick trade and doesn't have the time to stay long in the market then the 5-minute to 15-minute time frame chart is for you. Using this timeframe means you will keep an eye on the market.

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Day Trading

If you are a day trader, it is 5 to 15-minute charts or 30-minute charts that you need since you are buying and selling currency within the same day and not overnight. This time frame is best used for traders who can spend his or her time monitoring the market before making decisions.

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Swing Trading

If you are a single trader, what you need is a 1- t4-hour chart or a daily chart since your stay in the market is longer and you are using large capital to trade the market. This type of timeframe is best used when you want to capitalize on trends without monitoring the market consistently.

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Position Trading

If you are someone who spends more than a week in the market trading, then you need time daily, weekly, or monthly to use and analyze the market. Using such a longer timeframe requires you to have patience and an understanding of the market.

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Disclaimer

We have talked about the timeframe that is suitable for traders according to categories which can be of help to you. Please note that this post only serves as educational content and not as investment advice.

_{All images used in this post, are gotten from my Tradingview App.}

Reference & Reference