Benefits of 3-Day Candlestick Charts in Short and Medium Term Trading

During the trading process, filtering out turbulence from short-term price movements is always a big challenge for traders. After more than 5,000 hours "on the screen", many traders have found ways to reduce the distraction from excess information and the pressure of watching the market every minute. One of those effective methods is to use a 3-day candlestick chart. Here are the specific benefits of applying this timeframe to a trading strategy.

1. Reduce market turbulence The 3-day candlestick chart has the potential to reduce unnecessary small price swings. Instead of getting caught up in short-term fluctuations, traders can focus on the main trend of the market. The elimination of this "noise" helps clarify the overall picture and facilitates the analysis process, thereby making more accurate decisions.
2. Identify the medium-term trend One of the important goals of trading is to identify market trends. With the 3-day time frame, the medium-term trends become clearer. Price movements during this period are not too affected by short-term events, thereby helping traders grasp the true direction of the market and predict the next moves effectively.
3. Support and Resistance Analysis Thanks to the compilation of data in each 3-day candle, support and resistance levels become easier to identify. These prices are usually important areas where the market tends to reverse or maintain stability. Accurately identifying these levels not only helps traders predict entry and stop loss points, but also enhances risk management in trading.
4. Reduce stress during trading Monitoring the market daily with every small fluctuation can be stressful and stressful, especially for traders who don't want to spend too much time constantly in front of the screen. The 3-day candlestick chart helps to alleviate that pressure by providing a more stable and overview view. When the market is not dominated by sudden changes during the day, traders can make decisions in a thorough and logical way, rather than reacting emotionally. Conclude Every trader has their own approach and perception of the market. However, the application of the 3-day candlestick chart can be a "little trick" that brings outstanding benefits to those who wish to reduce noise, identify clear trends, analyze support-resistance levels, and reduce stress during trading. While this method is not for everyone, it has proven to be a useful tool for many traders, helping to improve performance and enhance the ability to predict market trends. Try applying it and experimenting for yourself to find the strategy that works best for you personally.