Multiple Time Frame Analysis

weekly chart

Predicting upward or downward movement can help traders with accurate price analysis for exiting or entering the market. Hammer Candlesticks enable traders to identify potential market reversal points, determine the ideal time to enter the market and place buy or sell orders accordingly. Top Pullback Trading StrategiesPullback trading strategies provide traders with ideal entry points to trade along with the existing trend.


You don’t have to rely on candlestick patterns and price rejections. There you know, the 50-period moving average is an area of value for this market. If you take a step back and you look, you notice that the price tends to respect the 50-period moving average. It has a confluence of this one over here on the higher timeframe for multiple times.

Get a Different View of the Market

For example EURUSD could be an uptrend in the daily chart and a downtrend in the 4-hour chart. Using multiple time frame analysis will help you minimize losing trades because you will be able to identify where you are in relation to the bigger picture. There could be a new trend emerging from another time frame than the one you are trading in, and if you don’t check it, it could hurt you. With Multiple Time Frame Analysis, you can find the critical support and resistance levels in the market by monitoring currency pair prices over a substantial period of time. When you analyse a market in the long run, it brings you the market direction and trend, which then helps you predict the future market movement accordingly. When you identify the support or resistance level in the chart, as a trader, you can place more successful trades by trading with the market direction or against it, based on what the levels suggest.

We introduce people to the world of trading currencies, both fiat and crypto, through our non-drowsy educational content and tools. We’re also a community of traders that support each other on our daily trading journey. There is obviously a limit to how many time frames you can study.

Enable MTFA on Chart

For that matter, use the top-down multi-timeframe analysis by analyzing a weekly or daily time frame chart. In case you find a support or resistance level, go back to your low time frame chart and draw these crucial levels. In general, forex traders tend to use such charts to focus on the intraday time frame because they are planning on an imminent entry or exit from the market.

Hello everyone, in this analysis I want to show you how to use the smart money analysis method, so stay with me. Luckily for you, we here at aren’t about to let you graduate without knowing how to use multiple time frame analysis to your advantage. Some will be traders who will focus on 10-minute charts while others will focus on the weekly charts. We go down to the 4-hour timeframe, this is a factor of six. You’re wondering, often when traders traded support and resistance, they are all looking for common candlestick patterns like the shooting star, hammer, etc.


In general, traders will plot exchange rates over the full range of price data available to them. Often, a bar chart constructed using monthly bars will be used to look at prices in this time frame. For example, for a very short-term analysis, they might use tick charts where each change in the exchange rate of the currency pair of interest is plotted in real time as they occur. Alternatively, they might use slightly longer term bar charts with periods running from 1 minute to 15 minutes to analyze the intraday time frame depending on their intended purposes. When trading we use what we call multiple time frame analysis.

Guide to Forex Trading indicators.

If you make good gains and you profit, this advise may not be for you. Remember, you don’t need to only choose a one-time frame and stick with it. You are free to change time frames and mix and match until you find a workable strategy.


This extended time frame covers what sort of price action has been seen for the currency pair during the last several years. This can provide a good overall picture of the market’s recent memory in terms of price action and will generally be reviewed using a weekly bar chart. This time frame covers what has gone on over the last few months and will usually be plotted using a chart with daily bars.

Multiple Timeframe Loonie Tunes

Again, on the GBP/JPY, you can see that price is in this area of resistance. If you look at this market, you’ll notice that the price has come into this area of resistance. I cherry-picked these charts to illustrate my concepts, but I’m not expecting you to blindly trade them.

My S&P 500 (SPX) Outlook Over Multiple Time Frames: Look Out … – Seeking Alpha

My S&P 500 (SPX) Outlook Over Multiple Time Frames: Look Out ….

Posted: Tue, 28 Feb 2023 13:20:00 GMT [source]

TradingView has a chart layout feature with multiple charts per layout, so you can analyse an asset on multiple time frames under one tab in your browser. Always remember, when using multiple time frames, we work long to short to identify pricing trends. So, you can begin with a yearly, monthly, or weekly chart before going to daily and intraday time frames. In doing so, it’s very possible to find great trade setups in concert with the broader trend. Another consideration for this period is that fundamentals once again hold a heavy influence over price action in these charts, although in a very different way than they do for the higher time frame. Fundamental trends are no longer discernible when charts are below a four-hour frequency.

It is mostly used by traders who do not wish to spend the entire day monitoring a chart and hence choose to analyse a complete day’s chart together. It provides them with the overall trend, and they get an entry signal through 4-hour charts that act as a sub-chart of the daily chart. Both uptrends and downtrends can be identified in the daily chart, with the entry and exit points being available through the 4-hour charts. In this article, we will describe what multiple time frame analysis is and how to choose the various periods and how to put it all together.

Most of the time, you will learn a great amount of information if you bump up to a larger time frame or bump down to a shorter one you are currently on. Look for prior support, resistance, a trending pair, or one that is in a current channel. The High Wave Candlestick pattern occurs in a highly fluctuating market and provides traders with entry and exit levels in the current trend. Trading with more than one chart enables you to lock in profits by identifying ideal entry and exit points in the market. It provides you with strengthened market trends revealing the market direction to you, which plays a major role in placing successful orders. Moving to a medium-term time frame analysis, one can use the same chart as above to notice that the first half of 2021 was comparatively more volatile than the second half.

Multiple time periods allow the trader to time entries into the market using very short-term data while watching the longer-term picture for the daily or weekly trend. If the trend can be identified profitably, then the trader can filter or select short-term trades that have a better-than-average chance of becoming winners. As you can see from this intraday timeframe, price is moving in concert with the broader trend. Not only does this information confirm our bullish bias, but it may give us a strong signal to enter the market. For all intents and purposes, this type of technical analysis is an outstanding way to build positive expectation trading strategies. Here at the HowToTrade Trading Academy, we prefer using three-time frames to craft our forex trading decisions.

The pattern is also widely used in the forex market to determine strong support and resistance levels. The 15-minute charts are most widely used by day traders who monitor the fluctuation of currency pair prices throughout the trading day. This particular chart enables traders to trade even the small price fluctuations and tiMe frames that range anywhere between one minute to 60-minute charts. In different time frames, the market trends appear differently. For example, a trend might seem to go downward in the short-term time frame, but the same trend would actually be an uptrend when seen in a long-term time frame.

Rule 3: Determine Entry and Exit

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  • Also, remember, that each individual candle is assessed in…
  • Watching multiple time frames should be used by all traders who want to have a clear view of what is going on in the market, and also want to optimize their entries into the market.
  • Don’t forget to read about the multi time frame moving average strategy.
  • Multiple time periods allow the trader to time entries into the market using very short-term data while watching the longer-term picture for the daily or weekly trend.
  • The Money Flow Index can analyse the volume and price of currency pairs in the market.

For long traders, they need to use the long term chart such as weekly or monthly charts. All they care about is what will happen in a certain week or month. This is because in a hourly chart, the chart’s moving average might be heading higher but in a daily chart, the moving average is moving up. In addition, the average directional index might be at 34 in the daily chart but be 19 in the one hour chart.

Please read our previous article where we discussed How to Day Trade with Trend in detail. If you identify level correctly and confluence across different time frames, you can actually increase your winning trade. So, as part of this article, we are going to discuss the following pointers which are related to multiple time frame analysis.

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