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[QUOTE="Vlad RF, post: 217454, member: 61796"] [B][SIZE=5]How to Choose a Timeframe for Trading?[/SIZE][/B] [I]Author : Victor Gryazin[/I] [CENTER][img]https://blog.roboforex.com/wp-content/uploads/2020/05/timeframe.jpg[/img] [B]Dear Clients and Partners,[/B][/CENTER] In this review, we will speak about choosing a timeframe for trading. This is an important part of your trading strategy. [SIZE=5]What is a timeframe?[/SIZE] A timeframe is a time interval for representing the quotations on the chart. As a rule, price movement is represented on the chart as candlesticks (or bars) with the same period, corresponding to the chosen timeframe. The larger the timeframe, the bigger "volume" of the price movement is shown by each candlestick on the chart. You may set up any timeframe for the price chart but normally traders use basic conventional timeframes: [LIST] [*]MN is a monthly timeframe, each candlestick shows the price movement during a month. [*]W1 is a weekly timeframe, each candlestick shows the price movement during a week. [*]D1 is a daily timeframe, each candlestick shows the price movement during a day. [*]H4 is a four-hour timeframe, each candlestick shows the price movement during four hours. [*]H1 is an hourly timeframe, each candlestick shows the price movement during an hour. [*]M30 is a 30-minute timeframe, each candlestick shows the price movement during 30 minutes. [/LIST] The timeframe is chosen in the trading terminal. In such popular terminals as MetaTrader 4 and MetaTrader 5, there is a table of active buttons for the main timeframes on the Instrument board. Left-clicking the buttons, you can quickly switch from one timeframe to another. [IMG]https://blog.roboforex.com/wp-content/uploads/2020/05/timeframe-mt-en-1109x630.png[/IMG] [SIZE=5]How to choose a timeframe?[/SIZE] To analyze the price chart, we normally use not one but several timeframes. Analyzing the price movements on several timeframes, the trader receives a vaster picture of the dynamics of the financial instrument. This helps to forecast price movements for different intervals depending on your trading strategy. While for the general analysis of your financial instrument you may use all timeframes at once, for making trades you need a "narrower horizon". In many trend strategies based on the main rules of tech analysis, we usually choose two timeframes: [SIZE=5]Timeframes for long-term trading[/SIZE] Long-term trading normally means a relatively small number of trades that remain in the market for a long time - from several weeks to several months. This trading style is similar to investing: you choose an instrument that promises a substantial movement and make decision mostly based on fundamental analysis. Criteria for long-term trading: [LIST] [*]Little time for trading: you spend less than 1/5 of your worktime on it. [*]The deposit is large, you may enter the market with a large position for a long term, place big Stop Losses, and withstand deep drawdowns (from 50,000 USD). [/LIST] As the main timeframe for long-term trading, on which you will define the main trend and its aim, the MN (monthly) and W1 (weekly) timeframes will be the best. As an additional timeframe for finding entry points, use D1. In the picture, you can see these timeframes in use: [URL="https://blog.roboforex.com/blog/2020/05/21/how-to-choose-a-timeframe-for-trading/?utm_source=earnforex.com&utm_medium=cpc&utm_campaign=rf_en_external_forums_blog&utm_content=text&a=ohrb"]Read more at R Blog - RoboForex[/URL] [B]Sincerely, RoboForex team[/B] [/QUOTE]
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