Temporalities in Trading

in LeoFinancelast month

Hello everyone, in my previous posts I have talked about what is forex? Types of traders, types of charts among others. Today I wanted to make my post talking about temporalities in trading.

Many times when they are reading the course or when they are taking the trading course, and they see that they are going to talk about the temporalities, they skip this part, downplaying it. For me in particular, being very clear about what they are and the types of temporalities, is as important as talking about any trading topic.

A very important tip is that at the time of carrying out the analyzes, they can do it in different measures of time to obtain more information about what is happening with the price in the market.

The temporality is based on the time, in how many seconds, minutes, hours, days, weeks or months an operation can take us, or also knowing in what temporality to do the analyzes.

We can configure it with what we want our graph at the time of carrying out an analysis.

There are many temporalities but it varies between:

  • Seconds.
  • Minutes.
  • Hours.
  • Days.
  • Weeks.
  • Days.
  • Months.
  • Years.

An example that I am going to place is with the time period 1h. In the forex trading chart, based on Japanese Candles, each candle means the movement of the price of that asset in one hour, the price opened and closed forming a candle in that hour.

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This can be modified, to the comfort of each person at the time of analysis, another example I will do it with the temporality of 5 minutes.

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This is the same currency pair but at different times, here each candle opens and closes in 15 minutes.
That is why each temporality manages its trend differently, and gives results in different times, therefore, the longer the temporality in which it operates, the greater the patience must be when obtaining results in an operation.

What is the best time frame to operate?
It will depend on your trading style and the time you have to operate, if you have time to operate every day, you can operate in short periods in which you can perform several operations in a short time.

I recently made a post about the types of traders and it is closely related to temporalities.

Everything will depend on the way that the trader feels most comfortable when analyzing.

Analysis of different temporalities.

It consists of taking the price action of a currency pair in different time ranges.

This is a strategy used by some traders, they start by performing the analysis in a 1-day period, then in a 4-hour period, then in 1 hour, and finally in 15 minutes, to obtain much more precise analysis and enter.

To conclude, the temporalities go hand in hand with the type of trader.

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