When hours and days disagree
Reading a chart · OnlyTrade trading school
A pullback on the daily chart is a downtrend on the hourly — both readings are correct, they answer different questions. The bigger timeframe decides WHERE you want to be involved; the smaller one decides WHEN and how tight your risk can be. Trouble starts when the two get swapped: entering on a daily story with a five-minute stop, or holding a five-minute idea for a week because the daily looked fine. The forecast panel keeps three horizons apart for exactly this reason.
About this lesson
Written by the OnlyTrade team as a general explanation of a market mechanic. It uses no live market data.
Education, not investment advice. No method or result is guaranteed, and trading can lose money. Read the Risk Disclosure.