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Which time frame is better for prediction ?
3 Answers
<p>Once the underlying trend is defined, traders can use their preferred time frame to define the intermediate trend and a faster time frame to define the short-term trend.</p><p>A swing trader, who focuses on daily charts for decisions, could use weekly charts to define the primary trend and 60-minute charts to define the short-term trend.</p><p>A day trader could trade off of 15-minute charts, use 60-minute charts to define the primary trend and a five-minute chart (or even a tick chart) to define the short-term trend.</p><p>A long-term position trader could focus on weekly charts while using monthly charts to …</p>
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<p>Simple and effective. I would use a strategy in the direction of the trend from one time frame higher. For example, if I am trading on the 4HR, then I would use the Daily as my directional reference point. If I am trading on the 1HR, then I would use the 4HR as my directional reference point. However, there would be times when I would go against the trend, but only under special circumstances.</p>
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<p id="isPasted">The concept of a "better" time frame for prediction depends entirely on your trading style and goals: short-term traders might prefer 15-minute charts, while long-term investors often use daily or weekly charts.</p><p>There is no single best time frame, as each offers a different perspective on the market. A successful approach, known as multi-time frame analysis, involves using several time frames together.</p><p>The reliability of a prediction generally increases with the longer time frame you use, as they filter out random market noise and show more established trends. However, combining time frames will provide the most comprehensive view.</p><p><br></p>
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