Timeframes: the same market, different candles

Summary

Each candle covers a fixed period: one minute, one hour, one day or more. The same moment can look like a sharp drop on a 5-minute chart and a small dip inside a rising trend on the daily chart. Many traders look at a higher timeframe first to see the main direction, then a lower one to decide when to act. Always check which timeframe a chart on stream is using.

Key points

• Every candle covers a fixed period, from one minute to one week or more.
• A move that looks big on a short timeframe can be small on a longer one.
• Check the higher timeframe for direction, the lower one for timing.

Check yourself

Why do traders often check a higher timeframe first?

Practice