Multi-timeframe
Take direction from the higher timeframe and the entry point from the lower one. Never the other way round.
Multi-timeframe — what it is?
Multi-timeframe work means handling one instrument on several timeframes at once. Not flicking back and forth, but a fixed hierarchy of roles.
The higher timeframe answers where to: direction and the major zones. The working one answers where: structure and the markup of the zone of interest. The lower one answers when: confirmation and the entry point.
The mistake is almost always the same one: the decision gets made on whichever timeframe happens to be on screen, instead of the one it belongs to.
Multi-timeframe — how it is built?
In this app H4 is contextual, H1 is the working timeframe, M15 is for entries. The order of analysis always runs top down: direction on H4 first, then structure and the zone on H1, then confirmation on M15. The reverse order breeds bias.
Multi-timeframe — common mistakes
Starting your analysis on the lower timeframe.
Switching your working timeframe after opening a position.
Using more than three timeframes: they start contradicting each other.
Treating a lower-timeframe signal as sufficient grounds to act against the higher one.
Related to
Glossary
- instrument
- the specific thing being traded: EUR/USD, XAU/USD, BTC/USDT.
- timeframe
- the period one candle holds: M5 is five minutes, H1 an hour, D1 a day.
- zone of interest
- an area marked up to look for an entry point.
- point
- the minimum step of a quote, usually ten times smaller than a pip.
- position
- an open trade.