4.1 – A note on Timeframes
A time frame is defined as the time duration of choosing to study a particular chart. The time frame can range from intraday to monthly, to even yearly. In this video, let’s understand popular time frames and how we can use the same.
Let us move on to the following video, where we will l understand some critical assumptions about technical analysis.
We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth.
Key takeaways from this chapter
- Conventional charts can’t be used for TA as we must plot 4 data points simultaneously.
- A line chart can be used to interpret trends only.
- Bar charts are unpopular as they’re unappealing, and patterns aren’t easily identifiable.
- Candlesticks Types – Bullish & Bearish. The structure of the candlestick, however, is unchanged.
- Close > open = Bullish candle. Close < open = Bearish candle.
- Time frames are crucial in defining trading success.
- The number of candles grows as the frequency rises.
- Traders should discard noise from relevant information.