1HR in crypto trading refers to one hour of cryptocurrency trading data collected in real-time and presented as candlesticks. It is one of the most used time frames opted for by cryptocurrency traders who use technical analysis to generate signals.
Data collected during the 1 HR period can vary according to what the trader queries. In ordinary trading platforms, a user can get information on price movement, trading volumes–the number of traders who initiated positions during that sampling period–, and even capital inflow and outflow in and out of the exchange or other popular cryptocurrency exchanges.
The candlestick representing price action in the 1 HR time frame would capture the highest and lowest prices reached together with the opening and closing prices. This will help a trader gauge the strength of the market and even identify prevailing trends to capitalize on.
What is a candlestick? Well, this is not a reference to the household candle, but the name takes inspiration from them. The candlestick chart is a visual representation of the price movements of a cryptocurrency or derivatives. Price action is always shifting, and the representation on a chart can look like an arrangement of uneven candles. The name candlestick in financial charts represents crucial information in price movements such as opening and closing prices, highs and lows, and other information on the spread. Traders rely on candlestick charts to get representations and make their predictions.
Day and swing traders (short-term traders) use the 1 HR time frame to identify entries and exits. They can be used together with higher time frames, including the daily or weekly charts, to define the underlying trend better, helping guide traders who want to profit from short-term price volatility. However, the trading time frame selected by a trader depends primarily on their trading style and risk profile. As a rule of thumb, the longer the time frame, the more reliable the generated signal.
What Types Of 1HR Data Are There?
The most useful example of one-hour data is the fluctuation of an asset price within that time span. Cryptocurrencies are notoriously volatile, and such data presents a picture of price movements for an asset. Basing decisions on one hour may not be useful, and the trader can decide to use charts for an expanded time frame. For instance, taking individual one-hour candles for a twenty-four-hour period or even a week can help reveal trends. Cryptocurrency prices move sharply off information, and data from an extended period can show more than momentary jumps and falls.
What Is The Role Of 1hr Data?
Short-term traders have great benefit from 1 HR data. The picture of price action is necessary because such trading requires fast decision-making and execution. Such trading usually uses leverage to capitalize on price movements in shorter time frames. Notably, day trading comes with significant risk. The downside of leveraged trading is that one can lose money pretty fast. Therefore, even with the possibility of leverage, one must use tools to manage risk in their trading.