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Analyse Different Time frames – The Fundamental Reason
We just have a quick question here from Anna saying that sometime she sees we use the 30-minute timeframe for currencies and we use the 60 minutes when it comes to equities, and whether there is any specific reason and what we use for commodities.
Now, Anna, to be completely honest, there’s really no secret sauce with regards to the various timeframes.
RECOMMENDED READING: HELP WITH ANALYSING DIFFERENT TIME FRAMES
What I like to do for the equities is I like to have that on either a 60 or a 30-minute timeframe, viewing that from a shorter timeframe because we are doing the day trading analysis.
So whether it’s at a 60 or a 30-minute timeframe, today I chose the 60 just because I wanted to see more of the previous price action in terms of how equities move before today. But really no secret sauce there.
For the 30 minutes in terms of the currencies, we find that that, because we have eight screens running, that normally gives us enough information for the chart to look at.
Sometimes we might consider looking at a one hour, other times we might consider looking at even a shorter timeframe like the 15 minutes. And when it comes to commodities really the same.
It’s just the timeframe that we feel we are seeing what we want to see from the chart, so really no secret sauce or no special timeframe that we prefer to use for any of the various asset classes.