How to Choose the Right Timeframes for Crypto Trading

In this post we will trying the diferences between Timeframes and how to use them in Crypto Trading

1. Higher Timeframe (HTF)
2. Lower Timeframe (LTF)
3. Take Profit and Stop Loss

Higher Timeframe

Higher timeframes typically refer to Daily, Weekly, or Monthly charts.

These charts display price movements over longer periods of time.

Each candlestick represents a larger duration of time.

For example, a Daily chart may have a single candlestick

Pros & Cons of HTF

Pros: – Better entries and exits – Less monitoring time – Ideal RR – More technical movements

Cons: – Trading setups can take time to complete – Price Gaps

What to do in HTF

• Analyze the chart and the Market Structure ALWAYS in HTF.
• Mark your Levels (Support, Resistance, FVG’s..)
• Entry the trade in LTF. Since HTF is formed by several LTF.

Lower Timeframe

Consists of 1-15-minute Chart. LTF is not advisable for beginners and intermediate level traders. The movements of Price Action in lower time frames are fast, which makes it more risky to trade them.

Pros & Cons of LTF

Pros: – Large number of trading setups – Fast paced trading

Cons: – High Volatility – Event Day risks – Frequent losses and less wins – Unexpected MS

Source : CryptoSoulz