How MTF candles works?

<p id="isPasted">MTF (Multi-Timeframe) candles, also known as Multi Time Frame candles, allow traders to view price action from multiple timeframes on a single chart simultaneously. This helps traders analyze trends, potential reversals, and overall market sentiment more effectively by providing a broader perspective of price movement across different time scales.&nbsp;</p><p>Here's how they work:</p><p>1. Visualizing Multiple Timeframes:&nbsp;</p><p>MTF candles display price action from different timeframes (e.g., 1-hour, 4-hour, daily) overlaid on the current chart's timeframe.</p><p>For example, a trader on a 15-minute chart can see how 1-hour or daily candles are forming, without switching between charts.</p><p>2. Key Features and Benefits:</p><p>Trend Identification:</p><p>Traders can identify trends more easily by observing how price action aligns across multiple timeframes.&nbsp;</p><p>Potential Reversal Signals:</p><p>MTF candles can highlight potential reversal points when price action on different timeframes diverges or converges.&nbsp;</p><p>Improved Decision Making:</p><p>By seeing the bigger picture, traders can make more informed decisions about entries, exits, and risk management.&nbsp;</p><p>Time Efficiency:</p><p>MTF candles save time by allowing traders to analyze multiple timeframes without constantly switching charts.&nbsp;</p><p>Customization:</p><p>Many MTF candle indicators allow traders to customize the timeframes and colors, tailoring them to their specific strategies.&nbsp;</p><p>3. How They Are Typically Implemented:&nbsp;</p><p>Overlays:</p><p>MTF candles are usually displayed as overlays on the current chart, with higher timeframe candles often appearing as boxes or lines.</p><p>Data Visualization:</p><p>The indicator uses data from higher timeframes to draw the candles (or other representations) on the lower timeframe chart.</p><p>Dynamic Updates:</p><p>MTF candles dynamically update in real-time as new price data becomes available.</p><p>4. Examples:</p><p>A trader might use an MTF candle indicator to see if a bullish trend on the 1-hour chart is confirmed by a bullish trend on the daily chart.&nbsp;</p><p>They might also look for divergence between a short-term bearish trend on a 5-minute chart and a long-term bullish trend on a daily chart, which could signal a potential reversal.&nbsp;</p>