Page 19 - Trading #101 Course – Part One: Trading Basics

TRADING #101 COURSE – PART ONE: TRADING BASICS /2017-10-06

Chapter 3:

Selecting Your Time Frame

When we talk about time frames, we are discussing the interval of time it takes for one
“price bar” to open and close on a chart. You will need to know how to select the best
time frames to be successful.

There is an art to this, and as you gain experience, you will develop your own style of
selecting time frames. To start, based on your trading profile from Chapter 1, you will
already know whether your frequency identifies you as a day trader, position trader, or
investor.

• Day Trader – generally uses 1-minute, 5-minute and intraday charts
• Position Trader – generally uses daily, weekly and 60-minute charts
• Investor – generally uses weekly, monthly and yearly charts

Selecting a time frame to trade is a combination of several factors such as:

• Market cycle
• Volatility
• Liquidity
• Trading or investment account value
• Market price
• Your skill level
• How much time you have to monitor the markets

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