Choosing and combining timeframes for optimal analysis.
Timeframes determine the period each candlestick represents on your chart. Common timeframes range from 1-minute to monthly. The timeframe you trade defines your holding period, stop-loss size, and the type of analysis that's relevant.
Key insight: Higher timeframes are more reliable than lower timeframes. A double bottom on the daily chart is far more significant than one on the 5-minute chart because it represents more market participants and more capital. The signal-to-noise ratio improves as you zoom out.
Scalping: 1m-15m timeframes. Day trading: 15m-1H. Swing trading: 4H-Daily. Position trading: Daily-Weekly. Investing: Weekly-Monthly. Match your timeframe to your lifestyle and personality.
Apply this concept in combination with others. No single concept tells the whole story - confluence is key.
The Academy teaches this concept through structured lessons with real chart examples.
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