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Kotak

Stockshaala

Module 2
Mastering Charting Tools
Course Index
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Chapter 2 | 2 min read

Timeframes and Their Relevance for Traders

When you look at a chart on TradingView, you’re not just seeing price. You’re seeing price over a specific timeframe and that can change everything.

A timeframe is simply the period each candle or point on your chart represents. This could be 1 minute, 5 minutes, 1 day, 1 week, and so on.

Choosing the right timeframe depends on your trading style, your goals, and how much time you must track the markets.

Let’s take an example.

You’re looking at a stock like TCS.

  • On the 1-hour chart, the stock looks like it’s falling.
  • On the 1-day chart, it looks like it’s consolidating.
  • On the 1-week chart, it’s clearly in an uptrend.

Which one is correct? All of them, they’re just showing different parts of the picture.

This is why timeframe selection is critical. The same stock can look bullish or bearish depending on how zoomed in or out you are.

1. Scalping (Few seconds to a few minutes)

  • Traders make many quick trades in a day.
  • Use 1-min or 5-min charts.
  • High risk, high attention needed.

2. Intraday Trading (Same-day buy & sell)

  • Trade within the same day.
  • Use 5-min to 30-min charts.
  • Example: A trader buying HDFC Bank at 10 AM and selling it by 3 PM.

3. Swing Trading (Hold for few days to weeks)

  • Aim to catch short-to-medium trends.
  • Use 1-hour to daily charts.
  • Example: Buying a stock after a breakout and holding it for a week.

4. Positional Trading / Long-term Investing

  • Holding period can be months or years.
  • Use daily, weekly, or monthly charts.
  • Example: An investor who bought Infosys in 2020 and is still holding.

Ask yourself:

  • How much time can I dedicate daily?
  • Do I want to trade actively or invest passively?
  • How comfortable am I with market volatility?

If you only check your portfolio once a week, looking at 5-minute charts will only confuse you. Similarly, if you’re placing 3 trades a day, relying on the weekly chart won’t help.

Many traders use something called multi-timeframe analysis. For example:

  • Use the 1-day chart to understand the bigger trend.
  • Use the 15-min chart to decide when to enter or exit.

This helps you stay aligned with the broader market while fine-tuning your trades.

Timeframes are not just a setting on your chart, they define how you see the market. The same stock can look very different depending on which lens you choose. Pick the one that fits your trading personality and use it consistently.

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Choosing the Right Chart Type (Candlestick, Line, Heikin-Ashi)
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Drawing Tools: Trendlines, Fibonacci, Patterns

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