DIFFERENT TIMEFRAMES AND THEIR DIFFERENT USES FOR TRADERS 
There are many different timeframes to trade from. For beginners, this can be overwhelming, (check out the basics of risk management if you are an beginner), but after a while, you will understand the different timeframes and how you can use them. The preference of timeframe can vary by person, since some people prefer to trade long term or short term. Some traders would rather be more relaxed, so they would rather have trades that can last a long time, while some other trades would rather trade minutes. Some timeframes are meant for long-term analysis, and some others are meant for day trading or scalping.
- A timeframe in trading is a time-based chart interval.
- The monthly and weekly timeframes are generally used for long-term analysis.
- There is no superior timeframe, timeframes just tell you what the market is doing within a time interval
- Your favorite timeframe is up to your preference.
What is a timeframe?
A timeframe in trading is a time-based chart interval. Most trading charts have the timeframes and it is simple to use. The most common timeframes are the weekly, daily, four-hourly, 1 hour, 30 minutes, 15 minutes, and 5 minutes. However, some charts don’t offer timeframes below the daily timeframe, and day traders almost always need intraday time frames for entries and exits.
Intraday means that you are trading markets during regular hours and buying and selling on the same day.
Based on the definition of intraday trading, it would show that for day traders who would place trades and exit the trade on the same day most of the time, they would need intraday charts to time their trade well, set proper take profit levels and proper stop levels, and also set a proper risk-reward ratio on the trade.
It is important to notice that one trading timeframe isn’t necessarily better than the other. Each timeframe has its use and shows something about the market. It depends on the objective of the trader and personal preference.
Monthly and Weekly Time Frame
The monthly and weekly time frames are generally used for long-term analysis, or seeing what the overall direction of the market is. On these timeframes, you can determine the long-term trends, or whether the market is in a bull market or a bear market. Many times, traders use these long-term timeframes for entries, but swing traders or someone who wants to place a long-term trade could use these timeframes as entries.
Daily Time Frame
For the most part, this time frame is used by traders who don’t want to be in stressful trades and do swing trades. With the daily timeframe, you can find the primary trend in a chart. Even if you are doing more short-term trades, information from the daily timeframe can sometimes help your trades and improve your trading game.
60 Minute Time Frame
The 60-minute time frame is also known as the hourly timeframe. Even swing traders should check this timeframe because it lets you find more specific entries. Traders must be really specific with their entry points, so these lower timeframes are really beneficial. In these lower timeframe charts, you’d be surprised at how many different trading entries you can find.
Lower Time Frames
There are plenty of lower timeframes; 45, 30, 15, 5, 1, and even second timeframes. These lower timeframes are used by scalpers and day traders. Most of the traders who trade on these timeframes, like the 5-15 minute timeframe, are aggressive traders, whereas a 30 minute trader can be more passive.
There is no superior timeframe. Timeframes just tell you what the market is doing within a time interval. It all depends on your objectives and preferences. If you want to see the long-term trend, then the daily, weekly, and monthly timeframes will benefit you. If you are looking for scalping, then the 1 minute or 5 minute will benefit you. It all depends on what you want to do.
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