Good afternoon friends. The topic of our video is about time frames such as 5m, 15m, 30m, 1h (scalping), 4h, 1D (day trading or trading on a daily chart), 1W, and 1M (long term trading and investing on weekly and monthly charts). What is the difference between trading on each timeframe in cryptocurrencies and which one to choose, I will tell you further. Begin!
Scalping in cryptocurrencies
To make money trading cryptocurrencies, traders study charts and price movements. The rate of price and chart change directly depends on the timeframe. At 5m, we see the mood of the crowd for the last 5 minutes, and at 4H, for the last 4 hours. However, a 4-hour chart will show us much more information than a 5-minute chart. The shorter the timeframe, the more signals, and trades you can make – this is suitable for those who are eager to open trades.
The larger the timeframe, the fewer such signals, respectively. But on larger timeframes, starting at 4 hours, you get a better feel for the market and see the big picture. However, if you want to open many trades per day, for example, from 30 trades, you should use 3commas cryptocurrency bots. For robots, a time interval of 1 minute to 15 minutes is recommended.
Indicators and signals for 3commas bots are also selected taking into account the given timeframe. In the case when you want to open trades yourself, from 5 to 15 trades per day, this is called crypto scalping. A timeframe from 15 minutes to 1 hour is suitable for you. Scalping implies frequent checking of charts, quick fixing of profits and losses. Consequently, scalping is the most stressful and time-consuming type of trading, requiring around-the-clock sitting at the monitor.
Trading on the daily 4H and 1D charts in cryptocurrencies
Experts believe that the optimal timeframe for trading cryptocurrency is 4H and 1D – 4 hour and daily timeframes. The larger the timeframe, the less noise, less attention should be paid to the chart. It is enough to open only 1 to 5 trades per day, which does not require as much time as in the case of scalping on lower timeframes.
Trading on 4-hour and daily charts allow you to combine trading with your main job or business. There is much less stress here, and technical and graphical analysis work more efficiently and more accurately! Signals and indicators for 3commas bots on 4H and 1D timeframes also work better. And most importantly, this type of trading is easier for both beginners and professionals!
By the way, on TradingView, on a paid subscription for trading digital money, you can choose an individual timeframe, be it 8 hours, 12 hours, 2 days, and so on. Professional traders often use a 12-hour timeframe instead of a 4-hour timeframe, which is the golden mean between 4H and 1D. Therefore, for day trading and beginners, I recommend the timeframes: 4H, 12H, and 1D.
Long-term trading and investing in cryptocurrencies
What to choose in the case of positional or medium-term trading, when deals are held for several days or even weeks? These will be 1D (1 day), 3D (3 days, manually set in a paid TradingView subscription), and 1W (1 week) timeframes. In the case of 1D, you simply carry over trades to the next day and check the chart no more than once a day.
It is imperative to use Stop Loss or averaging in 3commas if the price falls in order to buy more below. There is also long-term trading (investing) when you simply buy one or another cryptocurrency and hold (hold) for a long time. For investment, charts 1W (1 week) and 1M (1 month) are suitable.
Stop Loss in the case of investing is usually not set, preferring averaging in 3commas. Long-term trading and investing takes almost no time! We chose a token, bought it, and keep it until its price rises to the desired value. And you can devote your free time to your family, relatives and friends, travel and enjoy life!
However, in this case, there are three important points. First, before you buy a particular coin, you have to do an analysis and make sure that it has great growth prospects. The second is a large amount for investment, starting from $ 10,000, in order to get a decent income after months. The third is the stress level. On the one hand, you don’t need to trade and check charts often.
But on the other hand, you will often worry about the fall of your digital money (even if this does not happen), or burn out with impatience – when will your token finally begin to rise in value? Not everyone is able to wait weeks and months for a profit, even with promising coins. Therefore, you need to understand for yourself – ready, and most importantly, can you take risks and wait?
The video about the timeframe in cryptocurrencies is completed. I told you what timeframes and why you should use them depending on your preferences. Your trading plan, trading strategy, and mental attitude also depend on the timeframe. If you are interested in promising coins for investment, you should join the botcryptotrade.com private group