Experts explained which timeframes are best for scalping, intraday, medium and long-term trading, and why it is important?
Changes in value in cryptocurrency and other markets are usually presented in the form of a graph, which indicates the price of an asset over a certain period of time. This time period is called a timeframe, and it is he who is considered the main instrument of exchange trading.
Timeframes come in different intervals: minute, hourly, daily, etc. It is recommended to choose them depending on the type of trade. There are no universal timeframes, and a trader needs to learn how to work with charts in all time periods, noted Maria Stankevich, EXMO Exchange Development Director.
Scalping
Scalping is earning on rapid fluctuations in the price of an asset. The point of this method is to close a large number of trades with insignificant profit, which ultimately brings tangible income. For scalping, Maria Stankevich recommends using a one-minute timeframe. She also notes that trading in short-term timeframes takes the whole day of a trader and is accompanied by a rather high psychological load, so it is better for beginners not to use this method of trading.
Intraday trading
Vladislav Bulochnikov, the founder of the cryptocurrency p2p platform Chatex, recommends monitoring the movement of quotes in one-minute and 15-minute timeframes. According to him, such time frames are good for traders who are going to close deals on the day they are opened.
Medium- and long-term trading
Minute timeframes are not suitable for trading cryptocurrencies in the medium and long term, since they are not very informative in this case, Bulochnikov notes. For medium-term trading, he advises using hourly and daily time frames. In the case of long-term trading, the expert recommends working with daily and weekly timeframes in order to be able to make a forecast for a long period.
Why is it important?
Incorrect work with timeframes can lead to losses, says Maria Stankevich. According to her, it often seems to traders that it is easier to make money on the short-term timeframe, since the chart moves quickly there. However, the higher the time interval, the better the technical analysis works, since there is less market noise on medium and long-term timeframes, explained the EXMO Exchange Development Director.
