The short-term timeframe is a small period of time when building quotes of currency pairs. Usually, the short-term timeframe includes:
- minute,
- five-minute,
- ten-minute,
- fifteen-minute.
Features
Fluctuations in the price movement become more obvious on the short-term timeframe, the trader can better choose a convenient entry point for opening a position, the direction of which is already determined on higher timeframes.
Fundamental indicators have a weak influence on the price behavior in these timeframes, although in a completely different way than their influence on higher timeframes. Fundamental trends are no longer noticeable on the charts below the four-hour period. Instead, short-term timeframes will respond to these indicators of market movement with increased volatility. The more detailed the market is in the direction of low timeframes, the greater the market reaction to economic indicators will be. Usually, these sharp movements continue for a very short period of time and are thus sometimes referred to as noise. However, traders usually avoid such trades on such time imbalances, since they track market trends on other timeframes.