HI, I am going through the Technical Analysis 101 which i am loving. In the trendline section, Chris has instructed for us to use the 1 hour candle charts. I am curious to know if the 1 hour charts should be the go to for charting or if there is a time frame that is preferred as standard when charting and why?
I do like to zoom out to see the bigger picture and long term trend of a market.
Hi, I’m glad to hear you are loving the course. Thank you for the feedback.
I would say that the 1-hour time frame allows a good balance of data granularity and seeing the longer-term picture at a glance - and it filters out some of the noise you see in smaller timeframes - so for me, it’s the most common timeframe I use personally. I also like the 20-minute timeframe, which gives three times as much data and the 8-hour chart which gives three candles per day.
Don’t worry about sticking to just one timeframe. Multiple timeframe analysis is a technique that’s worth practising.
I hope that helps
I can state that I use the 15minute candles to look for Overbought and OverSold indicators, then move to 1 hour and the 4-hour candles to get a confirmation of Selling or Buying signals, respectively. One timeframe alone is not sufficient.