⏳ DAY 10: Time is relative. What timeframe to look at?

Yesterday we learned about candlesticks, but today we will answer a big question: Why does Bitcoin seem to be sinking on the 15-minute chart, but on the 1-day chart it seems to keep rising? 🧐

Welcome to the world of Timeframes.

🔍 What is a Timeframe?

On Binance, you can choose how much time each candlestick represents. If you choose the "1h" chart, each green or red candlestick shows what happened in exactly one hour. If you choose "1D", each candlestick summarizes an entire day.

🖼️ The "Google Maps" effect

Imagine you are looking at a map:

Short Term (1m, 5m, 15m): It's like looking at your street. You see every pothole and every movement, but you lose sight of the city. There is a lot of "noise" and nervousness here.

Medium Term (1h, 4h): It's like looking at your city. You start to see where traffic is actually heading.

Long Term (1D, 1W): It's like viewing the country from a satellite. You don't see the potholes, but you can clearly see if the terrain is rising or falling.

💡 Which one should you look at?

If you are a beginner: Run away from the 1 and 5-minute charts! They will only cause you stress.

To analyze the trend: Always look at the 1-day (1D) or 4-hour (4h) chart. They will give you a much more realistic and calm view of what is happening.

To choose the right moment to buy: Once you know the trend is good on 1D, you can drop down to 1h to look for a better entry price.

🧠 Today's lesson:

Never make an important decision by only looking at a few minutes chart. Success in investments comes from looking at the "big picture". As we say in crypto: "When in doubt, zoom out".

🔥 Tomorrow on Day 11: Supports and Resistances. We will learn to detect the "floors" and "ceilings" where the price usually bounces.

What timeframe do you usually look at your cryptos? Are you someone who checks the chart every 5 minutes or do you prefer the calm of the daily chart? 👇

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