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SELECTING A TIMEFRAME

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SELECTING A TIME FRAME W hen day trading, you’ll obviously select a timeframe that is less than one day. Popular intraday timeframes are 60-minute, 30-minute, 15-minute, 10- minute, 5-minute, 3-minute, and 1-minute. When you select a smaller timeframe (less than 60 minutes), usually your average profit per trade is relatively low. On the other hand, you get more trading opportunities. When trading on a larger timeframe, your average profit per trade will be bigger, but you’ll have fewer trading opportunities. Smaller timeframes mean smaller profits, but usually smaller risk, too. When you’re starting with a small trading account, you might want to select a small timeframe to make sure that you’re not over-leveraging your account. However, when selecting a very small timeframe like 1-minute, 3- minute, or 5-minute, you might experience a lot of “noise” that is cause by hedge funds, by scalpers, and by automated trading. You might think that you see an eme