Chart Time Frames
As a Ninja in training, it’s important to know when, where and who to fight, as well as knowing how to fight. But the most important thing to know is when not to fight!!
Candlestick patterns are by far the most commonly used type of chart. They’re easy to read and newbie traders can pick them up quickly. They also provide an abundance of information, which you will learn about later. So from here on out, any chart examples given will display candles.
Ticks to Months
All charts you see when trading Forex has a specific time frame.
In the previous section you saw what a candle chart looks like. It is a series of candles plotted on a chart. The time frame of a chart simply refers to the time length of each candle.
The chart below is a 1 hour chart (commonly written as a ’1hr chart’ or ‘hourly chart’).
1 hour chart
So each of the candles on the 1hr chart, above, were open for exactly 1hr. What happens is
The previous candle closes and instantly a new one opens.
The new candle moves about up and down for an hour.
The candle closes and a new one opens instantly and so on and so forth.
You can have charts as low as tick charts, which is basically a 1 second chart, in which you get a new candle every second. You can also get charts as high as monthly charts, in which a candle opens at the start of the month and closes at the end. So each candle on the chart represents an entire month.