altFINS calculates candles and key technical indicators over 5 time intervals: 15m, 1h, 4h, 12h, 1d.  You should always mind which time interval you’re working in, and that will depend on your trading profile and strategies.

Broadly speaking, the lower the time frame you work with, the shorter the trade holding period and the smaller the profit / loss potential per trade.  So working with shorter time intervals will result in more trades each lasting minutes or hours, with smaller potential profit / loss per trade.

Crypto markets are volatile and fast moving, everything happens faster here than in the traditional financial asset classes like equities, commodities and forex.  While a Swing Trader in equities would normally hold a position for days, in crypto, his holding time will be more like hours to few days.

You can also trade on multiple time intervals, even trend trading strategies, which simply means more trading opportunities.

It is also recommended that you

1st – start with a longer term time horizon

2nd – pick which time horizon you’re comfortable working with – minutes, hours, days – and use that with a longer timeframe

3^rd – then zoom into the short-term period for tactical opportunities

And even your short-term trades (15m, 1h) should be in sync with the longer time intervals.  So if you’re looking to Buy BTC/USD because it has a bullish moving average crossover on a 15m interval, you should make sure that it’s also trending bullish on a longer time interval.

	Short Time Intervals (15m)	Intermediate Time Intervals (1h, 4h, 12h, 1d)	Longer Time Intervals (1d, 1wk, 1mo)
Trader profile	Day trader	Swing trader	Position trader
Trade frequency	Dozens of trades per day	Fewer trades (1-10 a day)	Few trades
Trading strategies	Too many to list Heavily reliant on technical analysis, and reading of candle patterns	Tends to look for multi-day chart patterns including moving average crossovers, cup-and-handle patterns, head and shoulders patterns, flags, and triangles. Key reversal candlesticks may be used as well	Trend following (SMA or EMA crossovers) Often supplemented with fundamental outlook
Pros	Lots of trades allow for quicker learning process if risk is managed (proper position sizing, use of stop loss orders, etc.)	Requires less time than Day Trading Maximizes short-term profit potential by capturing most of market swings Traders can rely entirely on technical analysis, simplifying the trading process	Lowest time commitment needed. Works well in markets with sustained trends.
Cons	Very time consuming, stressful.  Prone to more false signals Compete with automated algos, high frequency trading (HFT) systems, hedge funds.	Abrupt market reversals can result in substantial losses Swing traders often miss longer-term trends in favor of short-term market moves	Requires patience to ride out volatile markets like cryptocurrencies, where fundamental valuations are not well established
Commission expenses	High	Medium	Low

 

How to Use Crypto Time Intervals Effectively

• Start with a Long-Term View: Begin your analysis with a longer-term time horizon (e.g., 1d, 1wk, or 1mo). This helps you identify the broader trend and assess the overall market direction.
• Choose Your Trading Timeframe: Decide whether you’re more comfortable trading on short-term (minutes/hours) or intermediate-term (hours/days) timeframes. This should align with your risk tolerance and trading goals.
• Zoom Into Short-Term Opportunities: Once you identify a trend in the longer timeframe, zoom into shorter periods (15m, 1h) for tactical opportunities. Short-term trades should align with the overarching trend on higher intervals.

Sync Your Strategies Across Time Intervals

For example, if you’re considering buying BTC/USD because of a bullish crossover on a 15-minute chart, confirm that the trend remains bullish on longer time intervals like 1h, 4h, or even 1d. This ensures your trades are not isolated from the broader market trend.

Why is this important?

Short-term signals often generate noise or false signals. By confirming with longer timeframes, you reduce the chances of entering losing trades.

Popular Trading Strategies for Each Interval:

Short-Term (15m)

• Candlestick Patterns: Focus on candlestick patterns like doji, engulfing, and hammer formations.
• Indicators: RSI, MACD, Bollinger Bands.
• Execution: High trade frequency, tight stop-loss orders, and proper risk management.

Intermediate-Term (1h, 4h, 12h)

• Chart Patterns: Look for flags, triangles, cup-and-handle patterns, or moving average crossovers.
• Indicators: Use MACD for momentum and moving averages for trend confirmation.
• Execution: Manage trades with wider stop losses, focus on capturing market swings.

Long-Term (1d, 1wk, 1mo)

• Trend Following: Identify sustained trends using SMA or EMA crossovers.
• Fundamental Analysis: Incorporate news events, market sentiment, and adoption trends.
• Execution: Lower frequency trades, patience to ride out volatility.

Learn more about in altFINS Crypto Trading Course.

Advantages of Trading Across Multiple Time Intervals

• More Opportunities: Using multiple timeframes gives you access to both trend-following and tactical trades.
• Flexibility: Combine day trading and swing trading strategies for diversified risk and reward.
• Risk Management: Longer time intervals provide a safety net to filter out noise in shorter intervals.

Tips for New Crypto Traders

• Start Small: If you’re new, focus on intermediate-term intervals like 1h or 4h. These provide a balance between activity and risk.
• Practice Risk Management: Use stop-loss orders and position sizing to limit potential losses.
• Avoid Overtrading: Resist the urge to trade every signal; patience is key.

Mastering time intervals in crypto trading is a game-changer for traders at any level. By aligning your trades across multiple timeframes, you can optimize your strategies, manage risk, and capitalize on the fast-moving crypto markets. Whether you’re a day trader, swing trader, or long-term investor, understanding the dynamics of each time interval will give you a competitive edge.

Ready to trade smarter? Start exploring crypto time intervals with altFINS today!