- Traders that employ one-week charts are typically excellent at evaluating the market from a broad perspective
- Swing traders can use the weekly chart to determine the trend, then utilize the daily chart to initiate positions
- Ultimately, some traders feel most at ease trading on shorter time frames like the 1-hour chart all the way to the 1 minute chart
One of the reasons beginner traders don’t perform as well as they expected is that they frequently trade at the improper time period for their trading style.
One-week charts are popular with beginners and experienced traders alike. Nonetheless, some traders prefer to avoid this strategy because it requires longer intervals of time between trades.
Choosing the most appropriate time frame
Traders that employ one-week charts are typically excellent at evaluating the market from a broad perspective and have an investment portfolio that is heavily weighted toward fundamentals rather than technical indicators.
A weekly trader benefits from not needing to constantly watch the trade. Traders will also be able to view the market over a longer period of time.
There are also swing traders, who trade on one-day time frames. Swing traders have the advantage of being more focused on long-term earnings and being comfortable with carrying a trade overnight.
Swing traders can use the weekly chart to determine the trend, then utilize the daily chart to initiate positions in a variety of ways.
Ultimately, some traders feel most at ease trading on shorter time frames like the 1-hour chart all the way to the 1 minute chart. The former is short, but not excessively so, and still allows traders time to assess the market and make judgments without feeling rushed. While the latter timeframe can provide some perfect scalping or market riding opportunities.
Final thought
The best timeframe to trade cryptocurrencies depends on the trading method you choose and your specific objectives. The goal is to be comfortable with the time frame in which you’re dealing. Experiment with several time frames to see which one works best for your trading style.
