I.38. The concept of a timeframe. The importance of the timeframe.

Timeframe means the time period described by a single candle or bar. Figure 27 shows the daily timeframe for the Sberbank stock. In the image we see the price behavior from the beginning of December 2021 to the beginning of January 2022.

Fig.27. The daily timeframe of Sberbank shares.

If it is important for us to find out how the price behaved inside the bar on December 14, 2021, then we need to switch to the hourly timeframe (see Figure 28).

Fig.28. Hourly timeframe of 14.12.2021 Sberbank shares. Comparing Figures 27, 28, we see that the time scale gives different information and forces us to focus on different periods of price movement. Plunging into a smaller timeframe, we see the “microcosm” of the price, losing knowledge about the movement in the “macrocosm”. Next, we will consider this issue in more detail.

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