THE HAnDbOOk Of TECHnICAL AnALySISWe observe the creation of a 15‐minute bar and candlestick in Figure 3.2 via
such a process. This method may be used over any duration to create bars and
candlesticks of longer or multiple periods, normally referred to as higher time-
frame bars and candlesticks. Hence, a 15‐minute bar represents a bar that is as-
sociated with a higher timeframe, unlike 5‐ or 10‐minute bars.
Figure 3.3 shows a series of OHLC based bars and its equivalent candlesticks
being formed by the quantization of price into 5‐minute intervals or periods.
figure 3.2 Higher Timeframe Price Action Represented by Composite/Combination
Bars (OHLC).
figure 3.3 The Quantization (Filtering) of Price Action.