Hello and welcome to CantosCharts Masterclass. I'm Sandy Jadeja, Chief Technical Analyst for City Index. Welcome back to another lesson in technical analysis and chart reading. As always, these are simply for information and educational purposes only.

We're going to continue by taking a look at time because this is quite a useful tool. In a previous lesson we discussed how to use time and we'll just take a look at another example to help you understand how these can be used for short-term trading techniques.

Let's take a look at this chart over here. I'm not going to tell you what the chart actually is but the first thing we notice is that this market is in an uptrend, so can we use time to help us find an entry and an exit point?

Well over here what I've done is changed this to a weekly chart, so we can still see that the longer term trend is to the upside as is the shorter term trend.

Now, we can use time and we can look at seasonalities for market tendencies. In other words, that's the condition. So once we get a condition we then need to define an entry and an exit point. So we can use price parameters, we can use chart patterns for that and of course, we need to learn how to manage the risk.

So if we take a look at this chart now, this is coffee. It's a commodity and the first thing we notice is that this market is in an uptrend. We've got higher lows and higher highs, but currently the market is trading sideways, so we can trade the breakout in the upside or of course on the downside. But if we use time analysis, then that can be quite useful for us.

Now coffee is generally bullish at the year end, so that's a good point to have as a frame of reference. We notice that the current trend should remain bullish to support the idea that we're in an uptrend.

Now from December 22 to January 13 coffee has generally risen towards the upside, so straight away we can see that this market has given us fairly good information. We know that the market is in a bullish trend. We know that the time is suggesting that the market should continue higher, so how would we trade it?

Well again, we can back to candlesticks and we can use candlesticks as an entry or an exit point, but the current position is actually a little bit difficult because we're trading in a consolidation.

So the best way to trade this is to look for a bullish move and look for a potential bullish candlestick. So we can look for a bullish engulfing or a bullish hirami pattern and we really do need to wait for that.

So once we start entering that timeframe, let's watch over the next few weeks to see what kind of candlesticks patterns emerge and then trade from that respective.

So, as I said previously, candlesticks as a price. The time factor tool is useful to give us a condition and we can either enter and exit on the actual dates or we can look for the candlesticks patterns to help us get into the market.

So use price and patterns for entry and exit within the respective time period and of course, manage risk. What we mean by that is don't put too much on a trade. We can use 1 per cent, 2 per cent of our equity.

Well I hope this lesson on time analysis has been useful for you. We look forward to seeing you in the next lesson. This is Sandy Jadeja for CantosCharts Masterclass.