Because of the analysis of the past and current price charts of a security, technical traders try to forecast the movement of a security. The time frames are a time span of security generally shown on the chart ranging from a min to month or yearly.
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..
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 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 days price fluctuations occurrence tends 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 trading purposes.
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