Forex Dictionary Terms

Time Frame

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Definition – What does Time Frame mean?

Time frame refers to the period that a forex trader chooses to operate in. The time frames in forex can encompass seconds, minutes, hours, days or months. Currency traders may use multiple time frames to analyze and track a trade or they may just stick to one. Time frame is also written as timeframe.

ForexTerms explains Time Frame

In forex trading, finding the right time frame can be a journey of discovery. Generally speaking, the shorter the time frame, the more technical signals it will produce. A 5 minute chart will naturally have more technical signals and chart patterns than a weekly chart because more price action is being displayed on the smaller scale, whereas a weekly chart shows daily price action by summarizing all the minute and hourly price action into a single daily data point. If a trader wants to be in the thick of the action, making decisions at a rapid pace, then a shorter time frame like 5 or 10 minutes may be best. If a trader wants more time and conformation on signals, then an hourly or daily chart may be best. A beginner trader should try out different time frames to find the one that suits him or her.

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