Multi-Timeframe Analysis¶
Difficulty beginner
Overview¶
Analyzing multiple timeframes provides context, improves entry timing, and increases trade probability. The higher timeframe sets the trend, the lower timeframe provides the entry.
Top-Down Analysis Framework¶
Weekly Chart → Trend direction, major S/R
Daily Chart → Sub-trend, patterns, key levels
4H Chart → Entry setup, risk/reward
1H Chart → Precise entry, stop placement
Timeframe Selection¶
| Trading Style | Primary | Confirmation | Entry |
|---|---|---|---|
| Position | Monthly | Weekly | Daily |
| Swing | Weekly | Daily | 4H |
| Day | Daily | 1H | 15min |
| Scalp | 1H | 15min | 5min |
Rule of thumb: Use a factor of 4-6x between timeframes
Entry Strategy¶
The "Triple Screen" Method (Elder)¶
Screen 1 (Higher TF): Determine trend direction Screen 2 (Middle TF): Identify pullback against trend Screen 3 (Lower TF): Enter in direction of primary trend
Weekly: Uptrend confirmed (price > MA)
Daily: Pullback to support (price near MA)
4H: Bullish reversal candlestick → ENTER LONG
Practical Guidelines¶
- Always Start Higher — Never analyze a lower TF without higher TF context
- Trade in Trend Direction — Higher TF trend > lower TF signal
- Counter-Trend = Higher Risk — Require better R:R for counter-trend trades
- Patience — Wait for alignment across timeframes
- Not All Timeframes Need to Align — Primary and entry TF must agree
Next Steps¶
- Custom Indicators — Building your own indicators
- Trend Analysis — Identifying trends