Here are list of the time frame (see fig. 7):
- 1 minute: it's called one minute chart
- 5 minutes: it's called five minutes chart
- 60 minutes or 1 hour: it's called hourly chart
- 1 day: it's called daily chart
- 1 week: it's called weekly chart
- 1 month: it's called monthly chart
- 1 year: it's called yearly chart
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| fig. 7 |
Daily chart is the most common one that analyst use.
Time frame is divided into:
- Short term: less than 1 month
- Medium term: 1 month to 6 months
- Long term: more han 6 months
So, what's the different between all of those time frame and which one to use for the analyzing?
In the shorter time frame, the entry signal and exit signal will come sooner than the longer time frame.
If we are going to trade for a short term, then we will use no longer than daily chart.
If we are going to invest for a mid term to long term, then we will use weekly and monthly chart.
In conclusion, there is no the best time frame chart to use.
Every time frame has its own benefit.
