Multi-Timeframe Analysis
Analyze different timeframes for entry confluence.
Core principle: Direction from higher, entry from lower.
Timeframe Hierarchy
Higher (HTF) → Direction, structure
Middle (MTF) → Confirmation, trend
Lower (LTF) → Entry, timing
Timeframe Selection
Standard Hierarchy
| Trade Type | Higher | Middle | Lower |
|---|---|---|---|
| Position | Weekly | Daily | 4-Hour |
| Swing | Daily | 4-Hour | 1-Hour |
| Day Trade | Daily | 1-Hour | 15-Min |
How Multi-Timeframe Works
Step 1: Higher Timeframe (Direction)
Check Weekly/Daily:
- Uptrend or downtrend?
- Key levels?
- Structure clear?
Step 2: Middle Timeframe (Setup)
Check 4-Hour/Daily:
- What setup is forming?
- Trend continuation or reversal?
Step 3: Lower Timeframe (Entry)
Check 1-Hour/15-Min:
- Where’s exact entry?
- What’s stop?
Example: Buy Setup
Weekly (Higher)
Price above 50 SMA → Uptrend
Last swing low holding → Bullish structure
Daily (Middle)
Pullback to key support
RSI bouncing from 40
Bullish divergence forming
1-Hour (Lower)
Price bounces off support
Entry: 101.50
Stop: 101.00
Multi-Timeframe Benefits
1. Better Confluence
Multiple timeframes = higher probability:
- Higher confirms direction
- Lower confirms entry
2. Better Stops
- Higher timeframe stop is logical
- Lower timeframe entry is precise
3. Better Psychology
- Know you’re right on higher
- Wait for entry on lower
Common Mistakes
1. Timeframe Conflict
Problem: Higher says up, lower says down.
Solution: Side with higher.
2. Analysis Paralysis
Problem: Too many timeframes.
Solution: Use 3 max.
3. Wrong Alignment
Problem: Trading against higher timeframe.
Solution: Always follow higher.
Key Takeaways
- Direction from higher — Check weekly/daily
- Setup from middle — Check 4H/daily
- Entry from lower — Check 1H/15M
- Align all three — For higher probability
- Side with higher — When conflicted
Related
price-action.md >>>
timeframes.md >>>
Higher confirms. Lower times.