In trading, a timeframe is the period of time represented by each candle on a chart.
For example:
1-minute (1M): Each candle shows 1 minute of price movement.
15-minute (15M): Each candle shows 15 minutes.
1-hour (1H): Each candle shows 1 hour.
4-hour (4H): Each candle shows 4 hours.
Daily (1D): Each candle shows 1 full day.
Why is timeframe important?
It helps you identify the market trend.
It helps you choose the right entry and exit points.
It helps you determine your trading styleβscalping, day trading, or swing trading.
It helps you understand the strength of support and resistance levels.
Higher timeframes generally give a broader and clearer view of the market, while lower timeframes show more detailed price movements.
So in summary, a timeframe tells you how much time each candle represents and helps you make better trading decisions.