: Captures corrections or consolidations, helping you identify if a pullback is an opportunity or a trend reversal. : Daily or 4-hour charts. Short-Term (Lower Timeframe) : Used exclusively for precise entry and exit timing.
| Timeframe Type | Purpose | Typical Examples | |----------------|---------|------------------| | | Defines overall market direction and key support/resistance | Weekly, Daily, 4-hour | | Medium (Signal) | Identifies entry zones and validates higher timeframe bias | 1-hour, 30-minute | | Lower (Execution) | Pinpoints precise entries/exits, stop-loss placement | 15-min, 5-min, 1-min | | Timeframe Type | Purpose | Typical Examples
Every beginner has stared at a single chart—say, the 4-hour EUR/USD—seen a perfect "buy" signal, entered a trade, and watched it immediately reverse 50 pips against them. Their analysis was correct on that single timeframe, but they were trading in a vacuum. stop-loss placement | 15-min