Time Frame refers to the duration for which a trader holds a position in a financial instrument, like a stock, commodity, or currency. Time frames can vary widely and are usually categorized into different types:
- Intraday: Trades are opened and closed within the same trading day. Time frames can be as short as minutes or even seconds.
- Daily: Trades are based on the daily price movements and are usually closed within a few days.
- Weekly: Trades are held for a week or more, focusing on weekly price charts for decision-making.
- Monthly: Trades are held for several weeks to months. Monthly charts are often used for analysis.
- Long-Term: Trades are held for several months to years. These are often more investment-oriented.
The choice of time frame depends on a trader’s strategy, risk tolerance, and market outlook. Some traders may even use multiple time frames for analysis to get a more comprehensive view of the market.
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