What is Charting on Different Time Frames?

Searching for Charting on different time frames mean? Well, it all relates to technical analysis of financial securities – such as stocks or currency pair done by technical traders. The time frame and particular technical indicators chosen by traders are two major variables that are used by technical analysts.

Due to the analysis of the past and current price charts of a security, technical traders try to forecast the movement of a security in the future.

Traders try to forecast the possible price of the securities with the help of time frames. The time frames are a time span of financial securities that are generally shown on the chart ranging from a minute to a month or year.

Which are the Most Common Chart Frame For Trading?

There are several charts with different time frames. The most popular time frames that can be seen in the graph are:

  • 1-Min Chart
  • 5-Min Chart
  • 15-Min Chart
  • 30-Min Chart
  • Hour Chart
  • Daily Chart and so on..

Let’s understand more about the features of time charts according to the nature of a trader.

How Nature of Trading Affects the Selection of a Time Chart?

The selection of a time frame span for studying security is totally dependent on the traders’ personal trading style. For intraday traders i.e., those who buy and sell stocks within a day, a short time frame of 5-min or 15-min is considered a good option. Whereas, for long term traders i.e., who hold stocks for overnight or for a long period of time are more inclined to opt for Daily or weekly charts.

This price movement which we can see in different time spans is very crucial for traders. For Ex: Intraday traders who look for an opportunity to realize profit within a day’s price fluctuations occurrence tend to look for the 15-min time span. However same price fluctuation viewed for a daily or weekly time span doesn’t mean for long-term purposes only.

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