Lesson 3 of 8 · 6 min

Timeframes Explained

What Are Timeframes?

A timeframe determines how much time each candle represents. The same stock can look bullish on one timeframe and bearish on another - this isn't contradictory, it's just different perspectives.

Common Timeframes

Intraday (Day Trading)
- 1-minute (1m): Scalping, very noisy
- 5-minute (5m): Day trading
- 15-minute (15m): Intraday swings
- 30-minute (30m): Intraday trends

Swing Trading
- 1-hour (1H): Short-term swings
- 4-hour (4H): Multi-day swings
- Daily (1D): Main swing trading timeframe

Position Trading / Investing
- Weekly (1W): Major trends
- Monthly (1M): Long-term direction

Tip

In SUTOK, we offer 1m, 5m, 15m, 30m, 1H, and 4H for different trading styles. Most users find 30m or 1H provides the best balance of signal and noise.

Multi-Timeframe Analysis

Professional traders use multiple timeframes together:

1. Higher timeframe: Determine the overall trend
2. Middle timeframe: Find your setup
3. Lower timeframe: Fine-tune your entry

Example: If the daily chart shows an uptrend, look for buying opportunities on the hourly chart, and time your entry using the 15-minute chart.

Example

GME Daily: Uptrend (bullish) GME 1H: Pulling back (wait for support) GME 15m: Hammer at support → Enter long

This is called "top-down analysis"

Watch out

Lower timeframes have more "noise" (random price movements). A bearish 5m signal in a strong daily uptrend is often just noise - the bigger trend usually wins.

Which Timeframe Should You Use?

Your StylePrimary TimeframeReference Timeframe
Scalping1m - 5m15m - 30m
Day Trading5m - 15m1H - 4H
Swing Trading1H - 4HDaily - Weekly
Position TradingDaily - WeeklyMonthly

Key takeaways

  • Each timeframe shows a different perspective of the same price action
  • Lower timeframes = more noise, higher timeframes = clearer trends
  • Use multi-timeframe analysis: trend on higher, entry on lower
  • Match your timeframe to your trading style