What Are Time Candles?
Introduction
Time candles are the most common type of candle and form the backbone of most trading strategies. They are important because they give traders a consistent picture of how the market is behaving.
Formation
Time candles form when a set amount of time passes since the last candle was created. For example, with 1 hour candles, a new candle will be created after 1 hour of time has passed since the last candle closed.
Advantages
Popularity
Since most traders use time candles, it’s easy to get information about how to trade them. There are thousands of courses, videos, and blogs detailing how one can trade time candles.
Intuitiveness
Time candles are easily understood. An important component of trading is knowledge of when the current candle will close. This is straightforward with time candles. It’s also possible to compute when future candles will be generated.
Disadvantages
Popularity
Nearly all traders are trading time candles, so finding an edge has to be achieved through other means such as superior technical analysis. This also means traders who use other types of candles could have an advantage as they are acting on information that the majority don't have.
Misinformation
Unfortunately, much of the information about how to trade time candles is inaccurate. It is a known problem that some content is created to deceive new traders. This can increase the time and investment it takes to create a profitable strategy.
Cryptick's Time Candles
Cryptick fully supports time candles with time frames as low as 1 second. Additionally, you can create your own timeframes with just a few clicks! Some examples could be 8 minute, 5 hour, or 3 day candles.
Conclusion
Time candles have solidified their position as a necessary tool for most traders, and it’s usually important to factor in the information on these charts. However, it can be worth factoring other types of candles into a trading strategy.