understanding how higher timeframe candles form on lower timeframes is one of the most useful skills in trading every candle has a few possible outcomes: it can stay inside the previous range, break higher, or break lower once i have a directional bias, i use lower timeframes to understand how that candle is developing and look for entries before the higher timeframe candle closes a daily candle with a long lower wick, for example, tells you price traded lower before buyers pushed it back up learning to recognize these patterns as they develop gives you a much better understanding of price action and where to position