In a method for tracing data within an integrated circuit, a default time stamp granularity is selected for a sequence of time stamps, wherein each time stamp has a resolution of 2**N. A sequence of trace events is captured and an elapsed time is determined between each time sequential pair of trace events in the sequence of trace events. A time stamp is formed to associate with each trace event of the sequence of trace events, wherein each time stamp has an associated time stamp granularity, wherein the time stamp has the default time stamp granularity if the elapsed time between a current trace event and a sequentially prior trace event is less than 2**N time slots, otherwise the time stamp granularity is slid to a larger value such that the elapsed time can be represented by N bits, whereby a small number N of bits can accurately represent a large range of elapsed times.