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Golden Option
Time Frames
The best time frame for trading does not exist as it depends on each one of us, which means that some traders adopt a style that works better with longer term time frames (weekly, daily & 4 hours) and others to shorter ones (1 hour, 30 mins, 15 mins and lower). Therefore, there is no right or wrong answer when it comes to time frames as we are all different. Each trader must choose to work with one or more specific time frames according to several factors but the most important is their profile and their trading system. The main profiles are as follows:
Scalping: It consists of operating in a very short term by opening trades and closing them in a very short time, for example in a few minutes or even in seconds. With scalping benefits can be obtained in small movements that occur as much more frequently every day, the shorter exposure time and the size of smaller positions usually entail a lower risk but it is necessary to open many positions throughout the day to that, with the sum of the benefits of all of them, a reasonable amount can be achieved. Scalpers usually handle the smallest time frames for their operation, for example, 1 minute, 5 minutes, 30 minutes, ...
Day Trading (intraday trading): It is the style of trading in which trades are opened and closed on the same trading day. The time frames in which an operation remains open and the objectives (take profits) are bigger than in the case of scalping. When closing the operations on the same day, the day trader avoids the rollover or gaps that occur during the night. In Day Trading, time frames of 15 or 30 minutes are usually used, for example for faster operations or 1 hour and 4 hours for slower operations.
Swing Trading: This is a medium-term operation in which the operations are open for several days, therefore it requires more time frames such as 1 day or 1 week.
At Golden Option Trading, what we specifically do, as our style is a combination of Swing & Day Trading, is build up our analysis by starting on the daily time frame (D) in order to draw our support, resistance & trend line key levels (retested more than 3 times), then lower to the 4 hours (4h) in order to adjust the previously drawn key levels and draw more if necessary. These two time frames allow us to determine the intraday trend and solid price levels at which the market usually bounces on or if breaks through, causes the trend to reverse. Furthermore, when we find an opportunity/potential setup, we scale down to the 1 hour (1h) chart to lookup for potential entries & sometimes even lower at the 30 min & 15 min chart to have further confirmations (candlesticks, patterns, rejections, etc).
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