Most of the people who starts trading starts with studying Candlesticks. Candlesticks are piece of information which is provided to you for a particular time period for which you are interested in.
But they may not be accurate all the time, as they should be decoded as a piece of fractals and if not, they are providing you unbalanced and inaccurate information.
The most funny thing for me is that I see people believe in what some explainer explains them in internet which is never true. Many mentors may have taught you if you have explored enough internet. 90% of them may have shown that price follows up a systematic approach from HTF to LTF. But I have zero belief in what they say. I never follow anyone's system despite I see some parts of working status of their system.
We usually call HTF driver, while LTF is called follower
But there is a zero proof I found that if you follow such system where you see Driver before analysing follower, then you will not loose your money or your probability will be very high.
I follow a single timeframe system M1, and M1 is not always correct, so I play with my own rules by breaking down M1 when its required. I will tell you what is the reason I have to break down M1 into seconds chart
Before this see screenshots of close up look of TOP, What happens is there is a big rally from top Fig.1
when you apply fibonacci on such swings, its very rare that price will extend to your desired level like 4.236
Now see the zoom out look, Price never extended to 4.236
Now lets see an example of another swing, The lowest level you see is touching 4.236. Fig.2
Now can you find difference in earlier swing and this one?
The differnce in Fig.1 and Fig.2 is that the size of AB swing where we apply fibonacci
In Fig.2 you see there is a pullback of 50% or more retrace but in Fig.1 there is aggressive fall.
So in Fig.2 there is no need to break down M1 into seconds
but in Fig.1 Yes its required
When I break down Fig.1 I found a pullback which is shown in M1 like this
When I apply Fibo like this, I see price extends to my level of 4.236 but if I select full swing in M1 chart like this
then I notice price never comes to my level and after hours of waiting, all effort is wasted.
So I hope you learnt in this blog when to break down your charts into LTF and when to not.
This example is taught in a way because I only use single TF M1 to trade, but if you watch HTF then you can break down your chart with the pyramid I provided above
Example if your parent timeframe is H1, you may break down it to M15 M5 if required.
