2. Multiple Time frames

What Are Charting Time Frames?

Any modern charting package will have several time frames for you to pick from. A time frame is an interval that creates a new price bar. For example, a 5-minute bar means that a new candlestick/bar is created every 5 minutes, each one representing 5 minutes of market data.

Generally, the time frame you use for trading defines a few things: the amount you’re risking on a trade, and the amount of time you’ll be in a trade.

A setup on a 1-minute chart can take just a few minutes to play out: you can be in and out of the market in that time. The same setup on a weekly chart can take a couple of months to work out.

In addition to using longer term charts as confirmation tools, they’re also useful for identifying vital levels. A resistance level that has been respected on a daily chart for over a year is much more significant than a support level on a five minute chart that’s been respected only for a few hours.

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