What is a Time Frame (TF) Interval?
The time interval is the period over which we report the price change on the chart. By choosing different intervals, you can get different information and read it differently. They allow you to assess whether it is just time to invest, or perhaps to sell instruments, or a moment to wait. The time interval varies depending on the time horizon of our investments.
What are the time intervals?
Intervals are divided into three main groups, that is, short, long and very long. These groups, in turn, are further divided into others, which are already available on Internet portals in the form of charts. On most sites you can find intervals from M1 through M5, M15, M30, H1, H4, D1, W1, MN. The individual letters, are abbreviations for English, where M stands for minutes, H for hours, D for day, W for week and MN is an abbreviation for month. The next markings next to the letters, or numbers, are, for example, the number of minutes or days of the week. Thus, M30 stands for a 30-minute interval.
- M1 – 1-minute interval
- M5 – 5-minute interval
- M15 – 15-minute interval
- M30 – 30-minute interval
- H1 – 1-hour interval
- H4 – 4-hour interval
- D1 – daily interval
- W1 – weekly interval
- MN – monthly interval
Steer all or selected intervals?
Traders usually identify one particular interval that will influence their decisions, and to this they select another that is close to the main interval. In addition to these two, one more can be added. Such a choice allows you to observe the main interval and one longer and one shorter. This allows you to get more detailed information and, above all, more information.
Do the intervals always show the same thing?
In practice, it looks like, for example, a longer interval may show that it is time to sell assets, but a shorter interval shows that it is better to hold off or buy. Here there is a contradiction, but it corrects itself over time, and eventually the intervals show one trend. This is an example of how time differences can affect decisions.
Choose a short interval or a very long interval?
Here, what matters is how quickly someone can analyze information, how resilient he is to stress, and what it looks like in him to make quick decisions. If someone relies on long intervals, he can afford to interpret them for a few minutes once a day, for which he has plenty of time for analysis and decision-making. Short intervals, on the other hand, means quick analysis and a quick decision, for which a certain mental toughness is needed. This is directly related to the trader’s investment strategy.
