Hello mates and friends as we all know that there are multiple time frame charts we can use in trading like for technical chart analysis, chart patterns and taking a trade but sometimes I see that many of people are using wrong time frame chart for above mentioned things so here I want to try share some information based only on mine knowledge.
1- Monthly chart-: This chart is most oftentimes by long term or positional traders series of data points where each data point is comprised of the price movement for a single month of trading and allow traders to better see the larger trend picture and by the monthly time frame chart they are looking at several years+ worth of price action, and want to hold trades for about a year or more (often called ‘position trading‘).
2- Weekly chart-: This chart is also used by position based traders but for a less longer trend for that traders also who want to see a picture of trend on weekly basis likewise option sellers or option buyers too and do not want to sit in front of monitors for whole day and by looking at the weekly time frame chart they are looking at just a few years worth of price action, and want to hold trades for several months at a time, perhaps close to a year.
3-: Daily chart-: This chart I think is the most popular chart in trading community as per my knowledge and commonly used swing traders those who want to carry their trades for some days like one to eight or ten days, it can be used too for Buy today sell tomorrow or sell today buy tomorrow trades.
4-: Hourly charts-: this chart is commonly used by traders those who depict the price movement of a stock every hour and want to track any of security on hourly basis for pre confirmation a trend on this timeframe chart to their desired timeframe chart to take a position or trade.
5-: Minute chart-: like I am sharing 15 minute chart for example these 5 to 15 minute chart most commonly used by intraday traders and for those who want to focus on the large price movements throughout the day and They don't mind waiting longer for trades to open and close. They prefer cleaner movement and are likely after only one or two trades over multiple hours of trading.
1- Monthly chart-: This chart is most oftentimes by long term or positional traders series of data points where each data point is comprised of the price movement for a single month of trading and allow traders to better see the larger trend picture and by the monthly time frame chart they are looking at several years+ worth of price action, and want to hold trades for about a year or more (often called ‘position trading‘).
2- Weekly chart-: This chart is also used by position based traders but for a less longer trend for that traders also who want to see a picture of trend on weekly basis likewise option sellers or option buyers too and do not want to sit in front of monitors for whole day and by looking at the weekly time frame chart they are looking at just a few years worth of price action, and want to hold trades for several months at a time, perhaps close to a year.
3-: Daily chart-: This chart I think is the most popular chart in trading community as per my knowledge and commonly used swing traders those who want to carry their trades for some days like one to eight or ten days, it can be used too for Buy today sell tomorrow or sell today buy tomorrow trades.
4-: Hourly charts-: this chart is commonly used by traders those who depict the price movement of a stock every hour and want to track any of security on hourly basis for pre confirmation a trend on this timeframe chart to their desired timeframe chart to take a position or trade.
5-: Minute chart-: like I am sharing 15 minute chart for example these 5 to 15 minute chart most commonly used by intraday traders and for those who want to focus on the large price movements throughout the day and They don't mind waiting longer for trades to open and close. They prefer cleaner movement and are likely after only one or two trades over multiple hours of trading.