It's great that you've dived into the topic of time analysis!
Let me explain simply:
Time analysis in trading means that you focus not only on where the price is moving (the trend), but also when this movement might happen.
In other words, you are trying to determine the perfect timing for entering or exiting based on time cycles or recurring time behavior.
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The most important concepts of time analysis:
Timeframes:
Like minute, 15 minutes, hourly, daily, weekly, monthly...
Each timeframe reveals a different movement of the price.
Market Time Cycles:
Some analysts believe that the market moves in cycles (up and down) related to certain time periods.
Time Patterns:
For example: after a certain number of days or hours, a correction or breakout occurs.
Gann Theory:
This is a famous theory that relies on both time and price angles to determine market reversal points.
Fibonacci Time Zones:
Using Fibonacci ratios, but in a time-based manner to determine moments of reversal or acceleration.
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Why is time analysis important?
Because you might have identified the trend correctly, but enter too early or too late and lose! Correct timing = higher success rate.
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A simple example:
If you see that the price has broken a strong resistance, time analysis might tell you that waiting for the end of the current candle or the completion of a specific time cycle gives a more accurate opportunity to enter.
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