Because human psychology is more or less constant, that means the principles of technical analysis can be applied to any time frame be it 5 minutes to daily or monthly time frames. The only difference between time frames is that the battle between buyers and sellers is much larger and pronounced on the higher time frames than on the intraday time frames.
Therefore, in generalizing, trend reversal signals are more significant on the longer time frames.
When trading price patterns, any time frame can be used. What matters most is the character of the pattern. This is a pin bar that was profitable on the 15 min time frame of AUDNZD.
I prefer to take trades on the longer time frames like the daily, 12 hours, 8 hours, 6 hours, and 4 hours time frames. I noticed that they contain less noise from the market and suits my temperament. You can choose yours. Notice how smooth this inside bar is on the 4 hours time frame of GBPJPY chart.
Compare the same signal on the 5 min chart. You can see that on the 5 min chart you have to deal with a whole lot more bars and you have to spend lots of time on the screen when you can get the same pips spending lesser time on the 4 hours timeframe.
That doesn't mean lesser time frames are inferior. Each person has to choose what suits his personality and is convenient.
Therefore, in generalizing, trend reversal signals are more significant on the longer time frames.
When trading price patterns, any time frame can be used. What matters most is the character of the pattern. This is a pin bar that was profitable on the 15 min time frame of AUDNZD.
I prefer to take trades on the longer time frames like the daily, 12 hours, 8 hours, 6 hours, and 4 hours time frames. I noticed that they contain less noise from the market and suits my temperament. You can choose yours. Notice how smooth this inside bar is on the 4 hours time frame of GBPJPY chart.
Compare the same signal on the 5 min chart. You can see that on the 5 min chart you have to deal with a whole lot more bars and you have to spend lots of time on the screen when you can get the same pips spending lesser time on the 4 hours timeframe.
That doesn't mean lesser time frames are inferior. Each person has to choose what suits his personality and is convenient.
