What are the daily charts? The daily charts are the charts that have a term of less than one day or 24 hours. So, a 1 minute, 5 minutes, 15 minutes, 30 minutes, 60 minutes and 240 minute charts all are intraday charts. 240 minute chart is also known as the 4 Hours chart. The reading of an intraday chart is the same for these different periods of time.
You can view these timeframes using a bar chart or a candlestick chart. A bar chart and a candlestick chart have some similarities and some differences. In a bar chart,the period of time such as 1M, 5M, 30, 60 or the 240M is represented with a bar. This bar has a small horizontal bar to represent the open, high, low and close of that period of time. There are some of the bar patterns that are considered to be very important and day traders love to trade with them.
On the other hand, in the chart of candles, period of time such as 1M, 5M, 15M, 30M, 60M and 240M are represented by a body of the candle has the open and close. This candle body will have two wicks on the top and the bottom of the body of the candle that will show you the high and low of that time period. If the close price was higher than the opening price, we have a bull candle and is always given a light color, like white or gray. And in that case the closing price was lower than the opening price, we have a bearish candle-that always gives a dark color such as black. There are a number of candlestick patterns that when appear on these charts are considered to be important trend reversal and trend continuation patterns.
These daily charts are used by short term traders or what are more popularly known as the day of traders. 1M chart is very fixed and there is a lot of noise on these charts due to the very short period of time used. 5M charts are also a bit firm. Both of these 1M and 5M charts are used by scalpers who need to quickly enter and exit the market grabbing a few pips each time. One of the more popular graphs are the graphs of 4H that many of the day traders to use to trade in the Forex market. When you trade on these charts of 4 hours, it is not necessary to monitor with frequency in comparison with the lower time period charts that need frequent monitoring. However, the reading of these daily charts is almost the same. If you know how to read the charts to 4H, you will also be able to read the lower time frame charts such as 1M, 5M, 15M, 30M and the 60m!