[Collect] How do you determine which time frame is suitable for the transaction?

in bitcoin •  28 days ago

Not all methods can work well in all time frames. If you are not aware of the ability to make good decisions, you are most likely working with a system that does not fit your time frame.

Everyone has a time frame in which they can work well. The time frame you think is right for you is the time frame you spend time researching, making decisions to make decisions.

The first thing you need to know when determining a trading strategy is to find a time frame that suits your personality, in line with your perception and analysis. If you are the kind of person who likes to think of things in various angles before the transaction is made, long-term time frames should be preferred.

If you are the type of person who can make a decision quickly, shorter time frames may be better suited for you. Most traders use a variety of methods and systems, not because they have not found a suitable trading system, but because they have not found a trading system that suits people, their thoughts.

In many cases, finding a suitable time frame is one reason. Most traders trade in low time frames and then expand to larger time frames.

This is partly due to a lack of experience as well as ‘fear’. Because profits and losses can happen quickly and sometimes randomly with new entrants, shorter time frames are attractive because it limits the initial tired thinking that the trader new feel when they maintain or develop their trading strategies.

Some trader concludes that trading is actually a random activity, so they should trade low time frames, such as 1 minute, 5 minutes, to limit possible abnormalities.

If a trader chooses a time frame that is too short to start, this type of trader usually thinks things move so fast and they tend to hesitate at entry points, looking for confirmation before entering the order.

If a trader chooses a time frame that is too long, waiting for a session to go from day to day, week after week makes it easy to feel overtrade or want the market to follow the trend you want. want. Watching the money in your account up and down will make them feel anxious fear and can not sustain the strategy in the long run.

Search for the time frame that’s right for you

Why search for a suitable time frame? The simple answer is that the market is structured. All traders are involved in a market with a single world in which there are expectations, emotions, fears, joys. No one wants to step into the market to lose money, all of them (including you) want to trade to make a profit immediately when entering the market.

Because most trades suffer losses, they are frustrated when they lose, looking for other time frames that they do not intend to trade with the desire to find the fastest profit.

They all want every transaction to happen in the way they expect and happen right away, but the concept of ‘happening right away’ is not entirely clear, so the time it takes for a transaction to evolve. It’s not really clear.

The market, price action will of course not happen fast to meet their expectations, they will lose control because price action on the market will affect the behaviour of the trader. This type of trader does not choose the method to use price action, the ‘price’ is manipulating their actions.

An example of a long-term trader investing in a market with psychology is described below:

Historically, for example, a trader according to his analysis will predict a bullish trend and he is willing to wait for a month to confirm the trend he can buy in a time frame of weeks.

He knows that he can not choose a day or an hour to make his decision. He will order at the potential price range. Buying a portion of the stock at the price he analyzes, buying more at a lower price than analysts because he is confident in his analysis and trading plans.

He accepts that he will hold this transaction no matter what happens unless there is a tendency to go worse than he expects. With this type of trader, what happens the next day is no longer important and he will wait to see if it is the signal of market disturbance.

In the dictionary of this trader, the term ‘occur immediately’ took place in 6 weeks. It is time to price trends based on your analysis.

Now watch a trader trading in the bearish market. He saw the weekly chart hit the high point and was the opportunity to sell. However, he uses the time (H) time frame and has no intention to hold the deal over the week. Having seen the price set a new high by candle week, he decided to wait 6 hours for a certain confirmation.

In both cases, we find that these traders are not too concerned about the price change after they have established their trading strategies.

They know what time frame is right for them, transactional psychology as well as everything that happens over time and does not make them too nervous. There are many different time frames and trading opportunities always exist, the difference between the traders is to find out the time frame that suits you and start earning money!

-Translated by Twogap -

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