Building Blocks

The box image says that smaller candles live inside larger ones. This chapter says something stronger: smaller candles make larger ones. The weekly candle is not a separate observation of the market that happens to agree with the daily candles. It is the daily candles, added up.

Once you see this, the relationship between timeframes stops being a rule you follow and becomes a fact you cannot un-see.

Five Days Make a Week

Take five consecutive daily candles — Monday through Friday. Each has its four numbers: open, high, low, close.