Time frame on context of trading is a frame of time within which a trader buys as well as sells a security that could be shares, currencies whatever.
Principles of technical analysis remain same irrespective of time frames.
This means that the all indicators can be applied uniformly across all time frames - intraday, daily, weekly, monthly, quarterly etc.
A Timeframe is the production of a chart that is comprised by combining a series of individual price bars together through time, each with the same duration.
Time Frame Combinations
Here at the BabyPips.com School of Pipsology, we like using three time frames. We feel that this gives us the most flexibility, as we can decipher the long, medium and short term trends.
Markets often trend in more than one direction at the same time: The Dow can be in an upward bull trend (which may endure for several years); while the secondary cycle corrects downwards over several months; and a short-term rally occurs during the current week.
The ~ or periodicity of a price chart refers to the duration in time of a single price bar. This can be anything from a second to a year or more, depending on the amount of data available.
The ~s of Trading
By James Stanley, Forex Trading Instructor
Which ~ to trade on
Before reading through this lesson, you should have previously read through:
Japanese candlesticks: an introduction
Multiple ~ analysis ...
Small ~s demand a lot of attention.
Would you like to check the market every 5 minutes or every 4 hours? The higher the ~, the less you have to check the markets.
Each ~ affects the other. A news event affects the intra day (5 minute) chart. This affects the hourly chart, which affects the daily chart, which affects the weekly chart.
Switch ~s For Better Exits
I just returned from a weeklong Trader's Camp hosted by Dr. Alexander Elder in a beautiful island nation in the South Pacific called Vanuatu. When I studied geography in school many years ago, Vanuatu was known as the New Hebrides islands.
Multiple ~ analysis!?! It sounds complicated and fancy, but it simply refers to the same chart with more than one time compression (e.g. daily or weekly). When both the weekly and the daily charts are in harmony, the chances of success can be greatly enhanced.
Choosing a ~
Any Forex trader that intends to use charts for trading analysis must determine which ~s will be most useful.
Note that you can navigate to this tab directly from the Quick ~s menu: click Customize list....
Only base your entries and exits on one ~
While you are looking for confirmation that all 3 ~s are in your favor, you can only use your base ~ for determining your entries and exits.
I have posted some charts below covering gold in detail using multiple ~s. The weekly which is long term, daily which is the intermediate trend, and the 4 hour chart which shows gold momentum and intraday action. At the very bottom I talk about the US Dollar and what is happening with that.
Business & Finance
How to Invest your Refund Depends on Goals and ~> ...
Day trading is the buying and selling of stocks during a single market day. At the end of the day, the typical day trader has his account back to 100 percent cash.
The Ultimate Oscillator can be used on intraday, daily, weekly or monthly charts. It is sometimes necessary to adjust the parameters to generate overbought or oversold readings, which are part of the buy and sell signals.
CURRENCY PAIR: Eur/Usd Gbp/Usd any other
Indicators: RSI with Period (2) placed on RSI with Period (12)
To setup rsi simply place the rsi(12) on your chart normally then drag
the rsi again and place it on top of the rsi(12) and enter the setting
There are two ~s to choose from:
Current - The list of Forex contracts to display on the Current page is updated every 10 minutes throughout the trading day. You will see new price data appear on the Detailed Indicator page, as indicated by a yellow "flash".
The breakout of the triangle is still possible.
Gold remains in the bullish channel.
With the breakout projections are: 1780, 1878 ...
Just like the instruments are different from each other the ~s are too. So in order for the trader to get the full education he/she needs to decide on ~.
~ for our charts:1h for trend and 5 min for signals.
Expiration time for our binary options:at least 15 mins.It is strongly advised to try different expiration times in a demo account before applying this indicator to our binary options trading in an account with real money.
The very first step before drawing P&F chart is to decide the ~ of the chart. In this tutorial we will be using daily chart.
Price point ...
~s for Divergence Studies
Divergence studies and signals are completely independent of ~s in use. That is, they operate and display effectively on monthly, weekly, daily or intraday charts.
Price action in 3 ~s generates different support-resistance considerations while Qualcomm tries to halt a sharp decline. The daily chart prints a hammer reversal near a 6-month low.
the ~ (the periodicity of each data point along the horizontal time axis) of a particular chart may be set or amended, either by simply clicking on the required periodicity button within the lower toolbar: ...
The Elliot wave theory may be used in all ~s. Waves come insteps, the smaller being the building blocks for the larger. The waves link together to form larger versions of themselves, and they also link together to form the same patterns at the next larger size, and so on.
Any ~ chart tells us a lot about the market and what it is doing, and we soon learn to read if what we presently see is going to continue or change. It is these change announcements that clue us into the beginning of a new direction or trend.
What ~ are we talking? Do you see a catalyst ahead?
Well, one thing that I've been watching closely is Germany's request to repatriate its gold. The Germans asked for their gold, that was being held at the Fed, to be returned a year ago.
My charts are set up to use the 5 minute timeframe. Can you use the 1 minute or even 15 minute setting? Yes, you can; however, I find that trading 5 minute charts best suit my trading style.
While testing your new trading system you may want to find out about its performance on different chart ~s and then choose the most accurate and profitable time-frame for you.
Open Demo Account ...
The "Custom ~" option allows you to specify the exact starting and ending dates for your chart. We have provided two entry boxes labeled "From" and "To" for this purpose. Please enter your dates in mm/dd/yy format.
Third, ~s on which you trade are of certain significance. Some price action traders prefer to use daily or weekly ~s, considering them as more reliable. This is so, because one daily bar contains considerably greater amount of data compared to one 5-minute bar.
Longer ~ Chart of Gold - Weekly
Gold Stocks as a Leading Indicator - Daily Chart - Trading Signals ...
-Define ~ that suits your analysis preference and lifestyle ...
Felix has continued a bullish posture. The trading positions have become more aggressive - financials and technology - rather than consumer staples and utilities. It is popular to predict a correction, but that has been true all year.
~: There are several reasons why you should only trade inside bars based on a daily ~. Most importantly, daily inside bars are more reliable than hourly or weekly ones, and the frequency of their formation is optimal for detecting the trends that they may be heralding.
Currency Pairs: Majors + Currency Crosses
Hammer Candlestick Defined ...
The ~ refers to the length of time of a trade under consideration when the trader looks at his charts.
Trading Desk ...
~: (3 months) according to how the chart is set up we are looking at three months worth of price movement. This can be changed and is highly recommended. Looking at a 3-6 month chart is necessary if you only plan on staying in a trade for a relatively short period of time.
~ Year to date 1 month 3 month 6 month 1 year 3 year 5 year % Less than 0% 0-10% 10.01-20% 20.01-30% 30.01-40% 40.01-50% 50.01% and over
any Greater than Less than any ...
The ~ on a market profile chart is shown using letter and / or colors. When letters are used, each letter represents one unit of the ~ (e.g. 5 minutes, 1 hour, etc.), and when colors are used, each color represents one unit of the ~.
The ~, when forex trading, really tells you what type of trading is appropriate for your investment risk tolerance and your personality.
T = ~s: Set target dates, and times, in which to achieve different tasks.
So instead of saying, "I need to track my expenses better," a S.M.A.R.T. way of re-framing that goal would be, "I'm going to spend five minutes every morning recording my transactions in the LearnVest Money Center." ...
what ~ would best with this indicator?
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Comment: * ...
Personal financial situation
Examples of goals are saving for a home, a child's education, or retirement.
Shorter ~ traders should use shorter reversal amounts like two or three blocks, whereas longer term investors should use longer reversal amounts like five or even ten blocks. However the most popular line break chart in Japan is the Three Line Break chart.
Smaller ~ support or resistance levels will always be easier to bust than those on a larger ~, even though the zones on the larger ~s will be wider.
Select a ~ based on how far into the future revenues can reasonably be projected.
Project future revenues based upon past trends and certain assumptions.
Make an assumption of the market multiple, in this example, a Price/Sales ratio, that can reasonably be expected.
The exact ~ can change based on how quickly a stock is trading.
To assist institutional traders, these alerts have stricter criteria than the faster ones, so fewer of these alerts appear.
Get TI Pro and try it FREE ...
Time and ~
At any given moment, it is possible to say that the market is both on an UP and a DOWN trend. That's because of the different ~s involved.
Multiple ~s - Find out how and why some day traders use them.
Selling Short - Can you make money when stocks fall? Absolutely.
Bid and Ask - Example tutorial for Bid and Ask Price/Size and Spread.
The use of more than one ~ to determine trades. For example, look to the weekly chart for the trend, support and resistance levels, then trade on signals generated by the daily chart only if they are supported by the weekly chart.
Narrow Range Bar ...
OPERATIVE ~ CHARTS
The Elliott Oscillator is most effective when the chart has the "correct" number of bars. From 100 to 150 bars is the correct number of bars to use with the oscillator. Dr. Bill Williams suggests 100-140. Tom Joseph implies that 150 is right.
There are also 3 different types of option spreads you can use when you consider timeframes.
1. Vertical spreads - Selling spreads that expire in the same month but with different strike prices.
LENGTH OR ~ OF A TREND
Trend lines can move in a same direction for any length of time until something major happens in the market that brings a change in the demand -supply balance and hence a change in price direction.
Typically the ~s are 7, 14 and 28 periods although they can be adjusted to suit the trader.
Use Shorter ~s For Short Term Trading
I said before that I don't use MA for short term trading - but you obviously could if you wanted to. If you want to use short moving averages (5-15 periods) you can get quick trading signals on short-term trends.
Markets & ~s - FX
“After foolishly spending thousands in my first year trying to learn how to trade currencies. I found your material, and now my trading has improved ten fold.
The longer the ~ you are in, the stronger these bands tend to be. Many traders have developed systems that thrive on these bounces and this strategy is best used when the market is ranging and there is no clear trend. Let's look at a way to use Bollinger Bands when the market does trend.
For an 18-year ~ Danny Cox, head of financial planning with independent financial adviser Hargreaves Lansdown, recommends smaller companies and emerging markets funds such as Cazenove UK Smaller Companies and JPMorgan Emerging Markets, ...
~ - Scalpers operate on a very short ~, looking to profit from market waves that are sometimes too small to be seen even on the one minute chart. This maximizes the number of moves during the day that the scalper can use to make a profit.
A very important method of analysing markets where the analyst works from a long time period down to the period in which action is to be taken. It is based on the idea that all trends are influenced by trends in longer ~s.
When choosing a ~, you can pick from tick (seconds), minutes, daily, weekly, to monthly. You can also select a time range by date and access to certain historical data with varying ~.
To draw a price chart, we need to choose a ~. Then, we need the open, high, low, and close prices of each period.
For the following examples, we are using daily prices.
1. Line price chart ...
3. After the chart is loaded, you can then select your chart setting:
a) Chart type: Candle, Bar, Line, etc.
b) Chart Window (Period of the chart): 1 day, 2 days, 1 mth, 3 mth, 6 mth, 1 year, etc.
c) ~: D (Daily), W (Weekly), M (Monthly), Q (Quarterly), Y (Yearly).
The daily chart ~ and 4 hour chart ~ are the best ~s for pin bar reversals and fakey reversals.
Price action reversal signals can often mark important turning points in market or even trend changes.
Trend Trading ~s
Several different possibilities exist for how to trade a freshly identified forex market trend. These strategies can vary significantly depending on the ~ that the directional trending movement in the exchange rate occurs within. Read More ...
Determine what ~ you're trading on:
Many traders get in the market without thinking when they would like to get out, after all the goal is to make money. This is true but when trading, one must extrapolate in his mind's eye the movement that one expects to happen.
1. Determine what ~ you want to use. Do you want to use Weekly, Monthly, Daily or intraday charts? Once selected you must use that ~ to trade because there are often multiple trends going on at the same time and they are not always in the same direction.
Long-term ~ (10-50 years or more).
A bond backed by the pledge of collateral, a mortgage, or other lien, as opposed to an unsecured bond, called a debenture .
Trading Multiple ~s In FX
This is often the first - and most costly - level of analysis to be overlooked.
Trading Strategies ...
There are two semis industries in the top 6 of the 20 day ~ - Memory Chips & Broadline.
When the price action of a penny stock is displayed on a chart in just the right ~, it often
becomes not just enticing, but exponentially to good to be true. To get an idea as to just how risky buying a ...
The remaining swing traders focus on the ~s in between. At the very short end, 2.5% would allow too much of a decline relative to the expected gain. However, it works well when you are trying to lock in a two-week move involving a 4% to 10% gain.
In wave approach the cycle is again simplified by the way of classifying it in ~s. For example the grand super cycle is the name given to a trend which happened or reoccurs once in a decade. Why cycle is so important for us? Answer is so simple.
Different Traders and Price Targets/~
Also at work in the market are the price targets, levels, and risk management psychology of various traders.
Just as you move from 1 minute to 5 minute to 15 minute or hourly charts, the intraday price movement gets "damped", the ~ that you choose to trade in becomes important. Many experts suggest combining a look forward and look back approach.
Multi-Timeframe - observing the price activity of the larger time in order to execute trades on a lower ~. Price activity is influenced by a broad array of motivated participants functioning within multiple timeframes.
And let’s look at the ~ chosen: 2003 to 2012. They chose to calculate this and compare it to equity funds from the bottom of a historic bear market to right around when equities made all-time highs. Hardly seems fair. In another part of the story it looks back four years.
The 50-day moving average and the 200-day moving average are two very popular ~s. The 50-day trend line is the red (longer) line on the chart above. It can be used as a support and resistance line in conjunction with other technical indications.
On technical side of the trading, the first thing to do is to find out the trend in one's trading ~ and the proper trading strategy for that trend. Some ride positions for months, while some ride positions for less than an hour or a day and their views of the trend obviously differ.
X axis: Represents ~ Example: minutes, hour, day, week, month, year. Depending on the X axis a chart may be referred to as a daily/weekly/monthly/yearly chart. The chart may look different for each of the ~s. A daily chart may not represent what a monthly chart does.
Show period separators = Display period separators (Ex: H4 ~ chart will show weekly period separators, D1 shows monthly period separators and so on)
Show grid = Displays grid on the chart
Show volumes = Displays the trading volume ...
For binary options traders, fundamental analysis can be used on a very short ~ such as sixty seconds or five minute options if the timing of the trade is correct.
The lockout period for each tranche is the ~ during which the tranche receives only interest payments. For each tranche, there is a estimated date for the first payment and last payment of principal-this duration is known as a window.
-based independent exploration and production companies such as EOG Resources (NYSE: EOG ) and Continental Resources (NYSE: CLR ) have grown production by almost 40% per year over this ~ in the three major U.S.
Foreign exchange trend lines indicate the change in share price over a given ~ and may be used as an alarm to indicate sharp acceleration or deceleration of trends in the market. Trend lines thus incorporate the direction and speed of a trading price.
Business Day - a business day is the ~ that most businesses, operate. The most common ~ for a business work day would be from 9am to 5 pm. This is a standard time and would vary depending on the type of business, and location..
For the ~ that we are setting up our swing trades in we are in a down trend. Look at the last few bars only. Be careful not to make trend relativity errors. Who cares if the primary trend on this chart is up when we will only be holding the trade from 1 to 5 days.
Collateralized mortgage obligations were developed to offer investors a wider range of investment ~s and greater cash-flow certainty than is available for mortgage pass-through securities.
The average that is selected should be descriptive of the chosen ~. This is almost always a different average length than the one that proves most useful for crossover buys and sells.
Senkou Span A - demonstrates the middle between the previous 2 lines, moved forward on value of the second ~. Senkou Span B - demonstrates the average value of the price for the third ~, moved forward on value of the second ~.
It is very important that you are only adding shares, because the wider ~s support your trade via trend support. Add/paring means you are weathering the shorter ~s in support of the wider ~s eventually playing out.
The main strength of this type of analysis is the flexibility with regard to the underlying instrument, regarding the markets and regarding the ~. A trader who deals several currencies but specializes in one may easily apply the same technical expertise to trading another currency.
Vary the number of periods in the VHF to suit different ~s. White prefers an 18-day window smoothed with a 6-day moving average.
Weighted Close ...
In economic models, the long run ~ assumes no fixed factors of production. Firms can enter or leave the marketplace, and the cost (and availability) of land, labor, raw materials, and capital goods can be assumed to vary.
See also: What is the meaning of Trading, Market, Chart, Trader, Trend?