Trading Style verses Trading Timeframe

28 de ago. de 2022

Hi all 👋

We all know about three types of trading styles -- investment, swing trading and day trading.
Yet most traders remain confused when it comes to trading timeframes. Through this post I just want to eliminate this confusion once and for all.

Let us understand some basics....


✅Anchor Chart

This is the chart used to determine the trend of the market. It conveys a trader whether the market is in uptrend, downtrend or sideways. It sets a bias for the trader. It also conveys us the information about the major support and resistance levels. These levels may provide excellent trading opportunities in future.

✅Trading Chart

Now that we know the trend through the Anchor chart, we have to take our trading decisions. Anchor chart is too big to take trading decisions. Reason being your stop loss would be too wide if you trade on the basis of Anchor chart, so we have to shift to a lower timeframe. This time frame is usually 4-5 times lower than the Anchor chart time frame. This lower time frame helps a trader to pinpoint his entries and decide upon his stop-loss to avoid unacceptable losses. Also minor support and resistance levels are more clear on this chart.

✅It is your trading style which determines your trading timeframe. For more clarity, refer the chart above.


⏰Bro tip

🚩Anchor chart helps you to trade in the direction of trend.
🚩When the trend is up on the anchor chart we should look for only buy set-ups on the trading time frame.
🚩When trend is down on anchor chart, we should look for only selling opportunities on trading time frame.
🚩When trend is side ways, buy at the support and sell at the resistance.

Hope this post will be useful for some traders and to the very least reduce the confusion regarding timeframes.

Thanks for reading
Bravetotrade