Timeframe Analysis

The timeframe that you choose to trade on is entirely down to you and is often selected based on a mixture of personal preference, time availability, market access, and risk appetite. For example, if you are trading on a shorter timeframe then you may need to ensure that you have the time available to monitor the progress of your trades during the period its open to identify any contrary or supporting signals. With a longer timeframe you may be able to take a more hands-off approach as you are expecting larger movements at a slower pace.

There is also the question of equity and how you chose to trade, many methods will incur a charge to hold your position open over multiple days which can impact your profitability over the longer periods. However, shorter-term trading can be harder to manage mentally as it presents a greater opportunity for instant gratification and demands more urgent decision-making. There is no right or wrong answer here as long as you are comfortable working on that timeframe and are willing to stick with it.

There is substantial benefit to remaining with a single timeframe across your trades as some indicators are more relevant in specific timeframes and you will begin to build up an understanding of each underlying asset's "character" in that timeframe. I personally prefer the 1-day chart as this tends to give sturdy reliable signals with a lower frequency, this allows me time to understand a trade before making any moves (at least in theory).

When you are planning your trades, it can be helpful to keep some chart space on the right to draw out what you are expecting to happen. This will never be completely accurate but it helps challenge your thinking when it starts to diverge too heavily.