What Is Multi-Timeframe Analysis?
π‘ Definition
Multi-timeframe analysis (MTF) blends a higher timeframeβs trend/structure with a lower timeframeβs trigger/entry. The higher timeframe sets context and bias; the lower timeframe finds precise entries, stops, and risk-reward.
Top-down context prevents fighting the primary move; bottom-up timing reduces risk and improves R multiples.
Visual Overview
Top-Down Flow: HTF Bias β LTF Trigger β Position Management
Determine the daily trend/levels, locate a 4H/1H setup at those levels, and execute via a 15m/5m trigger for tight stops and cleaner R.
Timeframe Mapping (3Γ Rule)
π Swing Trading
HTF: Weekly β’ MTF: Daily β’ LTF: 4H / 1H
π― Position Trading
HTF: Monthly β’ MTF: Weekly β’ LTF: Daily
β‘ Intraday
HTF: 4H β’ MTF: 1H β’ LTF: 15m / 5m
π§ Scalping
HTF: 1H β’ MTF: 15m β’ LTF: 1β3m
Confluence & Alignment Rules
Checklist
Why Multi-Timeframe Works
- Context Accuracy: HTF filters noise, reducing false positives.
- Precision: LTF entries tighten stops, improving R multiples.
- Adaptability: MTF bridges the two, syncing regime shifts and structure.
- Discipline: Alignment rules prevent counter-trend guesses and FOMO entries.
Practical Playbook
Step-by-Step
1) Scan HTF for trend, ranges, and key levels; mark zones of interest.
2) Drop to MTF to find setups (pullbacks, breakouts, consolidations) that touch the HTF zones.
3) Drill to LTF for triggers (break/retest, wick rejections, volume shift) and place stop at LTF invalidation + buffer.
4) Size from LTF stop; set targets at MTF swing points; consider HTF trailer if trend resumes.
5) If timeframes disagree, wait for alignment or skip β no alignment, no trade.
Common Mistakes
β οΈ Avoid These Errors
- Entering on LTF signals that fight HTF bias (counter-trend noise trades).
- Forcing trades when MTF setup is far from HTF level (poor location).
- Moving stops to HTF size while using LTF entries (destroys R).
- Constant timeframe hopping to justify a bias.
- Ignoring session/volatility differences across timeframes.
Advanced Concepts
πͺ Scale-In by Timeframe
Add tranches as LTF makes higher lows (long) within MTF trend; cap portfolio heat.
π Regime Filters
Use HTF volatility/trend filters (ATR slope, MA slope, market breadth) to gate LTF triggers.
π§ Mixed Models
HTF trend-follow + LTF mean-reversion entries at HTF pullback zones for asymmetric R.
π Event-Aware MTF
Flatten or widen stops into macro/earnings; only take LTF triggers post-event within HTF bias.
The Bottom Line
Start with the higher timeframe to set direction and key levels, confirm a setup on the middle timeframe, and execute with precision on the lower timeframe. If alignment breaks, step aside. MTF keeps you trading with structure β not against it.