Step by step
How to read it
- 1One day on the 4-hour chart: six candles.
- 2The same day on the daily chart: ONE candle — same open, high, low and close.
- 3Higher timeframes show the big picture; lower ones the details. Start high, then zoom in.
Watch out
Common mistake
Trading the 15-minute chart without a look at the daily. A “trend” there may be a small pullback on the daily.
In one line
Definition
The period one candle covers — 15 minutes, 4 hours, a day, a week, a month.
Check yourself
Check yourself
How many 4-hour candles make one daily candle in a 24-hour market?