1 Hour (1hr) – Crypto Glossary Definition:
1 Hour (1hr) in the context of cryptocurrency trading and charting refers to a specific time frame utilized by traders to analyze and track digital asset price movements. This time frame is characterized by data collected over a one-hour period, with each data point represented as a single bar, candlestick, or column on a price chart.
In cryptocurrency trading, the 1-hour time frame is a popular choice among traders who employ technical analysis to generate trading signals. Within this hourly data collection, traders can observe various aspects of price action, including the highest and lowest prices reached, opening and closing prices, trading volumes, and capital flows in and out of exchanges.
The 1 Hour (1hr) chart provides valuable insights into short-term price volatility and is commonly used by day and swing traders to identify entry and exit points for their trades. It enables traders to gauge market strength, identify prevailing trends, and make informed decisions based on price movements within this specific time frame.
It’s worth noting that while the 1-hour time frame is advantageous for short-term trading strategies, it requires quick decision-making and active management due to the rapid pace of price changes. Traders using this time frame should exercise caution and employ risk management tools to navigate the inherent challenges of such a fast-paced trading environment.