Multi-Timeframe Trading Analysis

A Framework to Help You Avoid Trading Against the Trend

Identify the Right Direction Before Entering the Market

What is Multi-Timeframe Trading Analysis?

It is one of the core trading frameworks used by professional traders. By analyzing candlesticks across different timeframes using a "top-down" approach, it thoroughly addresses the pain points of "predicting the right direction but not making money" and "frequently getting stopped out by false breakouts." It is regarded by countless short-term trading experts as the "Holy Grail" of trading.

Three Key Timeframes

1. Weekly + Daily: Macro direction, determine life or death, only trade with the trend

2. 4-Hour + 1-Hour: Market direction, find opportunities, lock in the current main battlefield

3. 15-Minute + 5-Minute: Precise entry, timing, maximize win rate

Core Usage

1. Three Steps Top-Down

a. Start with weekly and daily: Only look for long trades if the macro trend is clearly bullish; if the macro trend is bearish, only take short trades

b. Then look at 4-hour and 1-hour: Within the trend, look for trade opportunities when the price pulls back to support or breaks through resistance

c. Finally, 15-minute and 5-minute: Only enter when the lower timeframe shows a reversal pattern or an indicator golden cross

2. No Trading if Key Levels Are Not Broken

a. If important support or resistance on the weekly or daily is decisively broken, the trend may reverse—exit immediately

b. The previous highs and lows on the 4-hour and 1-hour are the best reference points for short-term entries and exits

3. Buy on Trend Pullbacks, Sell on Trend Breakouts

a. When the major trend is up, only look for long trades near support on 4-hour or 1-hour pullbacks; never chase highs

b. When the major trend is down, only look for short trades near resistance during rebounds; never try to catch the bottom

4 Keys to Maximizing Effectiveness

a. Most effective in trending markets; be patient and wait for breakouts during sideways ranges

b. Combine with volume and MACD to improve win rate

c. Weekly and daily directions are the most reliable; never go against the weekly trend

d. Never trade blindly using just the 5-minute or 15-minute charts—that’s the fastest way to lose money
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