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LESSON 5: Trading On Different Time Frames
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One of TA's key concepts is using different time frames (TF). Using different time frames can provide a better perspective on an asset & can be used to create a more complete picture of its potential price movements.
The TA time frames shown on charts range from one-minute to monthly or even yearly, time spans. Popular time frames that technical analysts most frequently examine include:
1-minute chart: This chart shows the price movements of an asset over a one-minute period. It is commonly used to identify short-term trends & potential entry & exit points.
5-minute chart: This chart shows the price movements of an asset over a five-minute period. It can provide a broader view of short-term trends and can be used in conjunction with 1-minute charts to make trading decisions.
15-minute chart: It can be used to identify longer-term trends & potential support/resistance levels.
30-minute & 1H charts: It is similar to the 15-minute chart, but provides a wider view of the market & can be used to identify longer-term trends & potential support/resistance levels.
4-12H (swing traders) TF charts: This chart shows mid TF. The trader can see more clearer view than lower TFs & levels from these TFs are more stronger than LTFs.
Daily, Weekly & Monthly TFs: are considered as HTFs, especially Weekly & Monthly charts followed by long-term investors, provide solid S/R levels.
No matter what TF you work with, you need to consider & mark your S/R levels from Monthly-1H charts, this is called a top-down analysis.
Day traders, those who open & close positions within a single trading day, prefer to analyze price action on shorter time frame charts, e.g. 5-minute or 15-minute charts.
Swing & long-term traders who hold market positions overnight & for extended periods are more likely to analyze the market using hourly, 4-hour, daily or weekly charts.
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On November 12, Bitcoin spot ETFs had a total net inflow of $818 million, continuing a net inflow for 5 consecutive days. BlackRock ETF IBIT had a single-day net inflow of $778 million. https://t.co/59u0BnEqLG