Graphical charts are the most popular method among traders to analyze the market. Yet, other than those charts, time and sales in your trading are also essential. They provide more detailed information about the market than graphical charts.
The Definition of Time and Sales in Your Trading
Time and Sales provide the most detailed market’s trading information. It shows each trade that happens in real-time and various information about them. The information includes the trade direction, the trade time, the numbers of traded contracts, etc.
Unlike the charts which give an overview of the market price movement, the time and sales show every detail of each price movement. Thus, these two methods are complementary to each other.
The time and sales consider all trades occurring in the market. These are the information considered in time and sales.
- Date and Time: The exact time and date when the trade happens.
- Direction: The information about whether the trade is buying or selling.
- Price: The price where the trade happened.
- Volume or Size: The number of traded contracts (or shares, etc).
Some time and sales also provide additional information, including the most recent bid and ask price or cumulative volume. Yet, this additional information is part of the time and sales, technically.
Trading with the Time and Sales
Traders can use time and sales in any timeframe. Yet, it is primarily used by short-term traders, like scalpers. Meanwhile, some other traders use it on their own, so they make their trading decision only based on time and sales.
Some other traders, usually, also combine time and sales with the graphical chart (bar and candlestick charts) or the depth of market 9usually known as level two market data).