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Why timeframe matter in trading?

rilo512

New Member
The timeframe in trading matters because it determines the duration for analyzing and making trading decisions. Short-term traders focus on intraday or daily charts, seeking quick profits from price fluctuations. Long-term investors, on the other hand, consider weekly or monthly charts, emphasizing fundamental factors. Each timeframe has distinct patterns and volatility, requiring different strategies. Choosing the right timeframe aligns with individual trading goals, risk tolerance, and preferred trading style, ensuring a strategic approach tailored to market dynamics.
 
Traders choose different time frames also because each of them has its own amount of time for trading. Some people have the opportunity to trade all day long, which is why they trade on lower time frames and make many transactions per day with a small take profit. And someone cannot spend more time on trading, so they choose a large time frame and trade in the direction of the general trend, holding the order for a long time.
 

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