Free Trading School · Level 4: Reading Charts
Timeframes
The same market looks different depending on the timeframe of each candle: one minute, fifteen minutes, one hour, one day, one week. A strong uptrend on the daily chart can look like a messy range on the five-minute chart.
| Style | Main chart | Holds trades for | Fits |
|---|---|---|---|
| Scalping | 1 to 5 minutes | Seconds to minutes | Full-time, very focused traders |
| Day trading | 5 to 15 minutes | Minutes to hours | Several free hours during market hours |
| Swing trading | 4 hours to daily | Days to weeks | People with a job |
| Position trading | Daily to weekly | Weeks to months | Very patient traders |
A useful habit is top-down analysis: check a higher timeframe for the trend, then use a lower one to time your entry. For example, find the trend on the daily chart and enter on the four-hour chart.
Higher timeframes are slower but more reliable. Beginners with a job should start with swing trading on daily and four-hour charts.
Quick answers
The same market looks different depending on the timeframe of each candle: one minute, fifteen minutes, one hour, one day, one week. A strong uptrend on the daily chart can look like a messy range on the five-minute chart.
Higher timeframes are slower but more reliable. Beginners with a job should start with swing trading on daily and four-hour charts.
Higher highs and higher lows. Each high and each low is higher than the previous one.
Next lesson: Trends: higher highs and lower lows