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A range is quite simply the area between a support & resistance.

On any given time frame, price is either:

• ranging sideways
• breaking out of the range and entering a new one

Price action is fractal — meaning that patterns we’ve identified in price action happen over and over again, regardless of time frame. In essence, the information that can be applied to the weekly timeframe will work just as well on the hourly time frame or daily timeframe.

Reading candles backwards is being able to understand how candles are formed on lower time frames with the regard to higher time frames — which strengthens your ability to enter at opportune times.

For example, if a 4 hour candle closes bullish at support. The next 4H starts you’re expecting price to respect support and move up. Most times it will first retrace down creating a lower wick (not breaking the last 4H candle bottom wick) then move up. This can be seen on the smaller time frames as 1H or 30M bearish candles (as the lower wick).

Remember that price action in the majority of 4-hr candles will often spend the 1st hour or the first half creating a bottom wick before driving up  — this will cement your understanding of ranges between higher and lower time frames.

With the fractal nature of price, know that this extends to every time frame. Majority of candles create a top and bottom wick. Knowing this it makes sense that it will create a bottom wick first if it's trying to close at the top or move up later, and vice versa.

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