Timeframe is the time interval that is used to display the price quotations on the graphics. Timeframe, in fact, is a time interval during which each new element built a candle chart, bar chart or line display of quotations.
What timeframes are used ?
Currently, the most commonly used timeframes are the following:
- M1 – a minute segment of price changes;
- M5 – a five-minute segment of price changes;
- M15 – a fifteen-minute segment of price changes;
- M30 - a thirty-minute segment of price changes;
- H1 – an hour interval of price changes;
- H4 - four-hour interval of price changes;
- D – a day interval of price changes;
- W – a week segments of price changes;
- MN – a month interval of price changes.
Why are the timeframes important?
Timeframes allow us to see the same chart of quotations of the selected asset at different time intervals. That is, the traders who sell long-term strategies apply graphic quotes from not less than H4 timeframe that allows them to see in the trading window 1 the interval accommodating several months of price quotations, and properly assess its subsequent movement in the long term. At the same time, the traders who trade options "60 seconds" take the smallest timeframe to predict the next change of its fluctuation. They do not need large timeframes as they describe the price movement over a long period of time.
Construction of various timeframes
On an example of a candle chart, H4 timeframe means that one price candle is formed within 4 hours. Thus, per night on the chart there are only 6 four-hour candles. On the chart H1 during the day there will be 24 candles and on the monthly chart 1 candle appears once per month.