Timeframes: Same Chart, Different Perspectives

When you first start looking at charts, one of the most common questions is:

"Should I look at the 1-minute chart, the 15-minute, or the 1-hour/4-hour?"

A timeframe is "the length of time one candle represents." The same price movement looks completely different depending on which time scale you view it through.

• 1-minute chart: A microscope showing every tiny fluctuation and noise.
• 1-hour chart: A short-term overview with some noise filtered out.
• Daily chart: The macro structure the market is building.

In this guide, we will cover:

• The basic concept of timeframes
• The relationship between candle structure and timeframes
• Which timeframe to use for your trading style
• The basics of Multi-Timeframe Analysis (3-Screen Rule)
• Common mistakes beginners make with timeframes

1. What is a Timeframe?

Simply put, a timeframe tells you "how much data one candle contains."

• 1m (1-minute): Summarizes 1 minute of trading into one candle.
• 5m (5-minute): Summarizes 5 minutes of trading into one candle.
• 1h (1-hour): Summarizes 1 hour of trading into one candle.
• 1D (1-day): Summarizes 1 day of trading into one candle.

As the timeframe gets longer:

• Individual candles compress more transactions.
• Noise decreases, and the major direction and structure become clearer.

Conversely, as the timeframe gets shorter:

• Every small movement is revealed.
• You can catch precise entry/exit timing.
• But you also see a lot of false signals and fake moves (noise).

Tap to zoom

2. The Russian Doll of Candles

As seen in Candle Basics, one candle consists of Open, High, Low, and Close prices.

Changing the timeframe means changing:

"How long of a period to compress into one candle."

Tap to zoom

As shown above:

• Multiple 5-minute candles gather → to become one 1-hour candle.
• Multiple 1-hour candles gather → to become one 1-day candle.

Therefore, for the same section:

• Looking at the 5-minute chart shows "where exactly to enter within this move."
• Looking at the 1-hour chart shows "what kind of wave this move is in the overall picture."

From a trader's perspective, it is important to clearly define:

• "On which timeframe do I make decisions?"
• "How will I refer to higher/lower timeframes for that decision?"

3. Key Timeframes by Trading Style

Timeframe selection is directly linked to your Trading Style.

Here is a general breakdown:

3-1. Scalping

• Holding Period: Minutes to tens of minutes
• Main Timeframes: 1m, 3m, 5m
• Reference: 15m, 1h
• Characteristics:
  • High usage of Orderbook & Tape (Orderbook & Tape).
  • Highly sensitive to fees, slippage, and liquidity.

3-2. Intraday (Day Trading)

• Holding Period: Hours to within a day (No overnight holding)
• Main Timeframes: 15m, 1h
• Higher Reference: 4h, 1D
• Entry Refinement: 5m
• Characteristics:
  • Aiming for one or two good moves within the day.
  • Focusing on daily direction + key zones helps reduce overtrading.

3-3. Swing Trading

• Holding Period: Days to Weeks
• Main Timeframes: 4h, 1D
• Higher Reference: 1W (Weekly)
• Lower Reference: 1h
• Characteristics:
  • Filters out a lot of noise, focusing on "where is this wave located?"
  • Entry timing on 1h is often sufficient.

3-4. Position Trading / Investing

• Holding Period: Weeks to Months or more
• Main Timeframes: 1D, 1W
• Reference: 1M (Monthly)
• Characteristics:
  • Cycles, macro structure, and fundamentals become more important than individual candles.
  • Higher proportion of spot trading rather than leverage.

The key point is to decide "what is my style" first, and choose timeframes accordingly. Avoid the habit of flipping your trading style by constantly changing timeframes.

4. Multi-Timeframe Analysis: 3 Are Enough

The basic framework used by many traders is the "3-Timeframe Structure".

1. Higher Timeframe (Big Picture)
   • Direction, major waves, important Support/Resistance zones.
2. Main Timeframe (Trading Timeframe)
   • The standard for building scenarios and deciding "Long vs Short".
3. Lower Timeframe (Execution)
   • Entry/Exit timing, checking detailed structure.

Example combinations:

• Swing: 1D (High) / 4h (Main) / 1h (Low)
• Intraday: 4h (High) / 1h (Main) / 15m or 5m (Low)
• Scalping: 1h (High) / 15m (Main) / 1m or 3m (Low)

Tap to zoom

The core is:

• "Set one Main Timeframe"
• And use the ones above/below it auxiliarily.

Every time you open a chart, ask yourself:

"What situation am I seeing on my Main Timeframe right now?"

5. Practical Analysis Workflow Example

Let's say an Intraday Trader views the market with a 4h / 1h / 15m combination.

5-1. 4-Hour (4h) — Higher Structure

• Looking at the flow of the last few days:
  • Is it a correction in an uptrend, a bounce in a downtrend, or a range?
• Mark obvious:
  • Highs/Lows
  • Horizontal S/R
  • Trendlines/Channels

In this step, focus on deciding the rough scenario direction: "Will I prioritize Long or Short today?"

5-2. 1-Hour (1h) — Main Timeframe

Now on the 1-hour chart:

• Around the levels marked on 4h:
  • How is the candle structure forming?
  • How is volume reacting? (See Volume)
• Are there signs of trend exhaustion?
• How deep has the correction wave gone?

The actual Trading Plan is built here.

• "In the 4h uptrend, I'll aim for a Long where the 1h correction ends."
• "Price is near the 4h box top, and if 1h shows a clear bearish pattern, I'll consider a Short."

5-3. 15-Minute (15m) — Entry/Exit Timing

Finally, on the 15-minute chart:

• Look for signals matching the scenario direction set on 1h.
• Define specific:
  • Entry Trigger
  • Stop Loss location
  • Take Profit targets

The Candle Patterns & Chart Patterns covered in Candle Patterns and Chart Patterns are mainly used in this step.

6. Common Timeframe Mistakes Beginners Make

If you handle timeframes incorrectly, it often leads to more confusion rather than better skills.

6-1. Switching Timeframes When Losing

• You are about to get stopped out on the 1h chart.
• Suddenly switch to 4h or Daily.
• "It still looks okay here..." and hold the position.

This is Stop Loss Avoidance, not refined analysis.

Decide beforehand "On which timeframe is this position based?" and align your Stop Loss and Targets to that same timeframe.

6-2. Getting Stuck on Too Low Timeframes

• Beginners often obsess over 1m or 5m charts.
• However:
  • Market Structure
  • Support/Resistance recognition
  • Distinguishing Trend vs Correction

Are mostly much clearer on 1h or higher.

At first, using just:

• Main: 1h or 4h
• Lower: 15m

is sufficient. Use 1m/3m only after gaining some experience, with the awareness that "I am intentionally zooming in."

6-3. Following Short-Term Signals While Ignoring Higher Timeframes

For example:

• Daily/4h is in a clear uptrend.
• You see a small short pattern on 5m.
• And keep trying counter-trend shorts against the big trend.

Short-term signals always exist. What matters is "what meaning that signal has within the higher structure."

7. Timeframe Checklist

To use timeframes more consciously, check these questions each time you open a chart:

1. What is the style of this trade?
   • Scalping / Intraday / Swing / Position
2. What is my Main Timeframe for this style?
   • e.g., 1h for Intraday
3. What is the market structure on the Higher Timeframe?
   • Uptrend / Downtrend / Range / Unclear
4. Where are the meaningful zones on the Main Timeframe?
   • S/R / Trendlines / Box Top & Bottom
5. What signals are appearing in those zones on the Lower Timeframe?
   • Detailed patterns / Volume reaction / Orderflow

If you can't answer these questions, simplifying your timeframe selection should come first.

Next Up

Timeframes organize the "Time Axis" of chart analysis. In the next article, along with Volume, we will look at:

• How to understand market movements three-dimensionally
• Using the three axes of "Price + Time + Volume".

Continue reading: Volume