Hello all
First i would just like to say what a great thread this is, its good to see traders thinking more deeply about the market and how it works.
Have to say that i disagree with crucial points idea that time has no bearing on market movements.
The reason i say this is because we all know the reason the markets move is due to people placing trades, but ask yourself what causes people to actually place trades in the first place? The belief that there is an opportunity to make money.
Now their belief that they can make money is governed by what?
Whatever method/system they use to enter the market.
For their system or method to indicate to them that their is an opportunity to make money what needs to happen?
Time needs to pass.
Think about this, a person who trades the trend will not place a trade unless they have identified that trend. For a trend to form time needs to pass, this is the same with virtually every strategy. if you trade candlestick patterns like pin bars or engulfing bars then for them to form time needs to pass weather it be 1 second 1hour or 1 month your not going to place a trade until you see that pattern and that pattern needs to from. the buying or selling which creates the pattern in the first place requires people placing trades which takes time. it takes a minimum of two trades to make a bearish pin bar, a buy trade and a sell trade, for these two decisions to be made time needs to pass no matter how small.
The market itself is not governed by time in the form of time frames that we can change on the charts, but the people participating in the market are themselves governed by time as for them to make a trading decision time needs to pass.
First i would just like to say what a great thread this is, its good to see traders thinking more deeply about the market and how it works.
Have to say that i disagree with crucial points idea that time has no bearing on market movements.
The reason i say this is because we all know the reason the markets move is due to people placing trades, but ask yourself what causes people to actually place trades in the first place? The belief that there is an opportunity to make money.
Now their belief that they can make money is governed by what?
Whatever method/system they use to enter the market.
For their system or method to indicate to them that their is an opportunity to make money what needs to happen?
Time needs to pass.
Think about this, a person who trades the trend will not place a trade unless they have identified that trend. For a trend to form time needs to pass, this is the same with virtually every strategy. if you trade candlestick patterns like pin bars or engulfing bars then for them to form time needs to pass weather it be 1 second 1hour or 1 month your not going to place a trade until you see that pattern and that pattern needs to from. the buying or selling which creates the pattern in the first place requires people placing trades which takes time. it takes a minimum of two trades to make a bearish pin bar, a buy trade and a sell trade, for these two decisions to be made time needs to pass no matter how small.
The market itself is not governed by time in the form of time frames that we can change on the charts, but the people participating in the market are themselves governed by time as for them to make a trading decision time needs to pass.