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Time frame is a term that refers to the time frame traded on financial markets, especially forex, binary options, and cryptocurrency.
What is the Time Frame Concept
Time frame or Timeframe is the period of movement of a candlestick during a trading session, that is, each candlestick will be formed and fluctuate up and down for a certain period of time, after which time another new candle will be formed.
There are many different time frames, specifically from 1 minute to 1 year. However, the 9 most popular time frames in Forex and Bitcoin trading are:
- M1: time 1 minute, every 1 minute the market will close/open 1 candlestick at this timeframe.
- M5: 5 minutes, every 5 minutes the market will close/open 1 candlestick at this timeframe.
- M15: time 15 minutes, every 15 minutes the market will close/open 1 candlestick at this timeframe.
- M30: 30-minute time, every 30 minutes the market will close/open 1 candlestick at this timeframe.
- H1: 1 hour, every 1 hour the market will close/open 1 candlestick at this timeframe.
- H4: 4 hours, every 4 hours the market will close/open 1 candlestick at this timeframe. ( Start the first candlestick is 7am, there is 1 floor number is 6am)
- D1: 1 day, every 1 day the market will close/open 1 candlestick at this time frame (At 7am, some Forex brokers will close/open the candle at 6am).
- W1: Period of 1 week, every 1 week the market will close/open 1 candlestick at this timeframe. ( At 7am on Monday every week, 1 number of Forex brokers will close/open the candlestick at 6am).
- But 1 thing to note is that Forex will be closed on Saturday, Sunday, the market will be suspended at dawn on Saturday (Vietnam time).
- MN: In 1 month, every month at the end of the month, the market will close/open 1 candlestick at this timeframe (starting at 7am on the 1st).
Basic example: when we observe the market at 9:25, in the H1 Timeframe, we will know that this running candlestick was formed at 9:00 and will close/open a new H1 candlestick at 10:00.
Why is it important to understand Time Frame?
Time Frame helps us with 2 main problems:
1. Tell us how the market moves during that time. From there, it helps us to have a direction to see and analyze the market.
2. Help us form the trading style of 1 Trader.
You can see the article WHAT KIND OF TRADER DO YOU WANT TO BECOME?
