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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

  1. Always Start Higher — Never analyze a lower TF without higher TF context
  2. Trade in Trend Direction — Higher TF trend > lower TF signal
  3. Counter-Trend = Higher Risk — Require better R:R for counter-trend trades
  4. Patience — Wait for alignment across timeframes
  5. Not All Timeframes Need to Align — Primary and entry TF must agree

Next Steps