Spend your time looking at 1-hour candlestick charts and then switch to a 5-minute chart and what happens?

Suddenly, all these exciting trends jump out at you, making you think that here’s some action, better get on it… Major movements, established trends, breakouts? None of these. Remember the vertical scale – these are just a few pips here and there, the illusion is of faster, more dramatic activity. If you switch back to the longer period charts it all comes back into perspective.

Over-interpretation
Visual data – we know that humans are too good at making patterns out of random wanderings – significance and signals where none exist. And this is just with a line chart, when looking at an indicator the risk can increase if not careful. For example, such as CCI (the Commodity Channel Index) if displayed on short period charts is very prone to leaping around from peak to trough and giving . If you’re not a scalper, don’t try to be one.

Conclusion
Watch what you’re doing when outside your comfort zone in terms of timescale. The chance of being set off by a false signal is that much higher here, among pip ranges and periods much smaller than you’ve been accustomed to.