Every single timeframe on a graph is useful in collecting information on our chosen cross.
A one week chart and a one month chart are extremely useful in gaining a wider perspective on the movement of our cross. You can determine the variations in price from the last year by studying more extensive cycles that take into consideration historical data dating back several years.
The trendline traced in this timeframe can then be examined in different time periods.
Graphs of one hour (H1) or four hours (H4) are useful in analysing a cross during the course of a day, giving a broader perspective on prices.
This helps us to understand with greater precision the signals of inversion or consolidation of a trend and to establish new points of support and resistance.
The history of these two charts varies between one week and one month and is useful for analysing pivotal points and tracing trendlines, evaluating with more clarity the development of the cross in question.
The short term chart is generally analysed for two reasons. The first reason is in order to understand the best way to open short term positions, by performing intraday trading. Positions are opened and closed during the course of a day and the graphs referred to are those that take into account the changes occurring in the last minutes. The candlestick periods are M1, M5, M15 and M30, which correspond to time periods of one minute, five minutes, fifteen minutes and thirty minutes.
Each period is important in understanding the direction of our cross. In the long term charts there is not much overlapping of candlesticks and the graph is more orderly. One candle represents multiple periods and the prevailing trend presents itself immediately. Moreover, the main levels of support and resistance are clearly visible. Even if you trade in the short term, it is a good idea to periodically set up a long term analysis and then subsequently set up your analysis of shorter periods.
This will give you a broader perspective to be able to objectively comprehend the market trend.