Angular 4 is a JavaScript framework that provides features for building web applications using HTML, JavaScript and TypeScript. It uses a component-based architecture and provides built-in features like animation, HTTP services and Material Design components. To set up Angular 4, Node.js, npm and the Angular CLI need to be installed. A new project can then be created using the Angular CLI and served locally for development. Angular 4 builds on Angular 2 but is optimized for better performance.