An important aspect about periodicity!

[usman7290]

Consider various timeframes;
1 minute
5 minute
15 minute
30 minute
1 hour
4 hour
daily

I was wondering how these time periods might effect people's perception of trends, particularly with candlesticks.

Consider the shapes candlesticks can take: Spinning Tops, Marubozu, Doji, Hammer, Hanging Man, etc.. These shapes are ultimate dictated by what periodicity is used.

This is particularly relevant on the one minute periodicity. Does all software/brokers synchronize on the same minute? If not their candlesticks could look radically different. The 'open' and 'close' are arbitrarily decided upon when the period ends and closes, but time is really continuous, not discreet.

Candlesticks are presenting continuous data in a discreet manner, which is I think might have a profound effect on the psychology of traders. While some algorithmic traders might be unaffected by this, manual traders might be effected differently by the different ways their candlesticks are presented, depending on how the minute designations are setup.

This is a difficult question to explain. I tried my best. I think this is an important topic.

 

[Rambo35]

As you said, different time frames will create different candlestick formations which is why it is very important to create a trading strategy based on one timeframe and make it work there. Moving it to another timeframe is likely to yield different results.