Timeframes are crucial. If you get them wrong, the ENTIRE strategy fails. But If you get them right, you can earn a good amount of money. So, let me show you the best ones to trade on.
Timeframes are broken into 3 scopes:
1. Macro - This is where you’ll look at a higher timeframe and extract your bias from. It’s your foundation.
2. Micro - This is where you build context for your setup.
3. Entry/Confirmation - This is where you place & manage your trades.
For a quick answer, here are the timeframes you can trade on:
👉 Position traders (who hold trades for a quarter) - Monthly as macro, Weekly as micro, Daily as entry/confirmation
👉 Swing traders (who hold trades for 1-2 weeks) - Weekly as macro, Daily/12hr as micro, 8/4hr as entry/confirmation
👉 Intraday traders (who hold trades for 1-2 days) - Daily as macro, 8/4hr as micro, 30/15min as entry/confirmation
👉 Scalpers (who hold trades for under an hour) - 4/1hr as macro, 30/10min as micro, 5min/1sec as entry/confirmation
The timeframe is related to the volume in the market. There is a direct correlation between the two. The higher the volume in the market, the higher your timeframe should be.
Your macro, micro and entry timeframes will be higher timeframes if the volume is high. They’ll be on lower timeframes if the volume is low.
For checking the volume, go to a forex volatility calculator. It will help you check how many pips price is moving everyday which will help you know how much volume is there.
The higher the pips, the higher the volume. The higher the volume, the higher your timeframe should be.
Please test and experiment with this to find out what suits you best. I hope you got value from this! 😁
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