A timeframe is the time period during which one candle appears on the chart. It is difficult for novice traders to understand which time frame to choose , what should determine the choice. Binarium broker experts have conducted an analysis and are ready to share conclusions about trading with different types of timeframes.
Varieties of time periods
The timeframe is set in the trading terminal window. Among the most well-known, which make sense to work with, are those with a time interval from a minute to a month:
- Short-term: M1, M30, N1, N4.
- Middle: D1 and W1.
- Long-term: MN1.
In addition to the fact that the timeframe shows the time during which a candle or bar is formed on the chart, it is necessary for analyzing price changes during a specified period. In addition to standard timeframes, custom ones are also used, developed by individual brokers to attract traders. These include non-standard two-hour time periods and two-month periods.
Short-term timeframes during moments of calm market mood open up more opportunities for profitable transactions. Traders need to open trades with short-term time frames based on the results of technical analysis . According to the observations of Binarium experts, such tactics can consistently provide a profit of 90%. To choose your timeframe option, you need to practice, combining intervals with different strategies and tools.
Elder's technique
Each experienced trader has his own method of using timeframes, but if you are just starting out and don’t yet know what time frame to work with and how to combine it with tools and strategy , we recommend listening to the recommendations of experienced investors who are ready to share their opinions.
The author of one of the most famous opinions is the successful trader Elder. It is possible that you have heard about the strategy - Elder's three screens , named in its part. The essence of the technique comes down to the simultaneous use of three screens with three timeframes: main and auxiliary. Elder argued that a decision can only be made after confirming the forecast for each of the time periods.
Should I follow Edler’s method or develop my own way of combining timeframes with strategies? It's up to you to decide, the main thing is to understand that setting the time period is one of the important stages on the way to the goal. Analysis, selection of tools, choice of strategy - all this gives results only if it is correctly combined with time periods.
Time frames and strategies - about communication
So, if time periods are directly related to the choice of strategy, let’s consider the most obvious “working” connections. Conventionally, in the world of trading there are 4 categories of strategies:
- technical;
- indicator;
- fundamental;
- based on candlestick analysis .
The technical category includes strategies based on technical analysis. Auxiliary tools for a trader here are price levels, support and resistance lines. Almost all time frames work in combination with such strategies, but the hourly interval is considered the most effective.
Indicators involve the use of oscillators and indicators . Almost all timeframes here are “working”; the choice will depend on the entry parameters.
Fundamental strategies are the most practical and thorough, based on deep fundamental analysis . The M5 and M15 time frames are ideally combined with one of the most used asset currency pairs. If these are stock assets, then longer timeframes are set - from a week to a month.
The Price Action strategy for analyzing figures and candlestick patterns works great in conjunction with H4.
What timeframe should I trade with Binarium?
It would be unfair to take away your choice and insist on using certain intervals. Binarium experts recommend gaining practical experience through trial and error. This is the path to professional growth and knowledge based on your own practice. In addition, there is no consensus regarding the use of one time frame or another.
Analyze the information described above, try different options, noting for yourself the most successful and losing ones. In order not to take risks just like that, train and test combinations on a demo account.
Of the timeframes most used on our website, we would like to highlight M1 and H1. Among all the others, they are the ones that work perfectly in combination with the main types of trading strategies and indicators. Moreover, to work with these types of time intervals, it is not necessary to use candlestick patterns, graphic figures and a news calendar. Technical strategies are quite capable of unlocking the potential of such combinations and ultimately ensuring profit.
See also:
How to verify an account with Binarium
How to open a new account with Binarium?
Mobile application for binary options broker Bianrium
What are the benefits of a VIP account with the Binarium broker?
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