stock market for beginners

Stock Market Timeline

Stock Market For Beginners:

Stock Market Timeline: Understanding the Stock Market Time Frames

Why all the hype about different time frames during stock market trading. Well, the answer to this question is two fold and can be answered in a question form

1. Would you decide to make a coffee date with your best friend and not specify the time?
2. Would you decide to make a coffee date with your best friend and not specify the date?

Time has been constructed by humans to create order and expectation for events to happen in the future. Like a course you take at school, time has been allocated to determine what grade you will be participating in during your educational level. This concept follows through in the stock market.

The reason why we focus on the different time frames is so we can allocate our time better. The brain of an intelligent human being, (the conscious mind, or in scientific terms, the pre frontal lobe, has been estimated to be able to process 2000 bits of information) at a time.

So when you focus your attention on a project for a specific time period your pre frontal lobe has a better chance of maximizing your brains working power, so you can achieve maximum results within that time period for that project.





In the Stock market it works the same. As a trader looking at a specific time frame, you tell your brain to focus on a stock's movement for 1 min, 2 min, 3min, 5min, or 60mins to determine whether the trade is viable or not.

Last Stock Market For Beginners lesson we focused on candles and how they traded.

From the example of EXTREM FEAR BAR, you now know that EXTREM FEAR BAR are formed when the bears take Absolute Total Control of a stock, which results in panic and selling of the stock.



When utilizing this example in time frames, the first question you would ask yourself before placing a trade is :

  • How long did it take the sellers to complete the candle?
  • In what time frame am I seeing this Extreme Fear Bar?


If you happen to see the Extreme bar on a 1 minute time frame, you know that the chances of a complete reversal of the stock is not as great as if you saw the Extreme Fear Bar in a 60 minute chart or 60 minute time frame.

The time frame in which the candlestick patterns form, determine the strength of the bulls or bears in the market or in that stock.

If you happen to observe a specific chart pattern in a stock on a 2min time frame, however, on the 60 minute time frame in the same stock you observe a pattern that is contrary to the one you are seeing on a two minute time frame you have to realize that the longer time frame (60min) will have more staying power than the lower time frame.




The higher you go in Stock Market Timeline, the better the odds of the trade working out.

If you see a reversal sign on a 60 minute time frame, you have to understand that the stock will reverse in the next 1-3hours, even if on the 2 minute time frame you observe a sign telling you that the trend is continuing.

Always make sure that you are aware of the bigger Stock Market Timeline before you enter a trade.










How to Invest in Stocks : Daily Tips and Learning

The goal of this website is to bridge the gap between the learning and the stock trading experience. To make that gap easier to bridge for all who participate in stock market for beginners, we advise for all new traders to acquire the Basics of Stock Market Investing....read more




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