This article is part of our comprehensive trading course, Master the Art of Trading, designed to guide you step-by-step through market mastery.
“Your chart timeframe decides how clearly you see the market — and how confidently you enter.”
In our previous article on Positional Trading, we talked about holding trades for a few days or weeks — perfect for people who don’t have time to sit in front of the screen all day.
But here’s something most new traders miss: Even with the right strategy, you can go wrong if you don’t choose the right timeframe.
What Is a Timeframe in Trading?
A timeframe is the duration each candle on your chart represents. Examples:
- On a 5-minute chart, each candle shows 5 minutes of price movement.
- On a 1-day chart, each candle shows the price movement of a whole day.
So, different timeframes show the market in different speeds and clarity.
Two Important Timeframe in Trading You Must Know
1️⃣ Analysis Timeframe (Where You Plan)
This is the higher timeframe you use to find the overall trend, support-resistance, and setup. It gives you the big picture.
- Examples:
- Positional traders use Daily or Weekly timeframe to analyze
- Swing traders may use 1-hour or 4-hour timeframe to analyze
2️⃣ Entry Timeframe (Where You Enter)
This is the lower timeframe where you look for the perfect entry after confirming setup from your higher timeframe.
- Examples:
- Positional trader may use 1-hour chart for entry after daily analysis
- Intraday trader may use 5-minute chart for entry after 15-min analysis
How to Choose the Right Timeframe Based on Your Style
Your Availability | Trading Style | Analysis Timeframe | Entry Timeframe |
---|---|---|---|
Full screen time (9:15 to 3:30) | Scalping / Intraday | 15 min | 3 or 5 min |
2–3 hours screen time | Swing Trading | 1 hour | 15 min |
15–30 minutes daily | Positional Trading | Daily | 1 hour |
No time during weekdays | Long-term Investing | Weekly | Daily (optional) |
Why This Matters
- If you analyze and enter on the same small timeframe, you may get false signals.
- If you only see daily charts for entries, you may miss perfect opportunities.
- Using a higher timeframe for trend + lower timeframe for entry = better accuracy + lower risk.
Final Advice
- 1. Start with Daily timeframe for clean, slow learning.
- 2. Don’t rush into lower timeframes unless you have screen time and experience.
- 3. Stick to one pair of timeframes — don’t keep changing.
- 4. Backtest your strategy on that combination.
Example (Positional Trading from Last Article)
Let’s say you spot a stock that looks strong on the Daily chart (Analysis timeframe).
You wait for a breakout.
Now you drop to the 1-Hour chart (Entry timeframe) to find a proper entry candle with volume.
This gives you a cleaner entry with tighter stop loss.