Free Trading School · Level 9: Key Levels and Multiple Timeframes
Multiple timeframe analysis
Looking at only one timeframe is like reading one page of a book. Multiple timeframe analysis uses three views: a higher timeframe for direction, a middle one for the setup and a lower one for the precise entry.
| Style | Direction | Setup | Entry |
|---|---|---|---|
| Swing trader | Weekly | Daily | 4 hour |
| Day trader | Daily | 1 hour | 5 or 15 minutes |
| Position trader | Monthly | Weekly | Daily |
- On the higher timeframe, identify the trend and the major support and resistance levels.
- On the setup timeframe, wait for a pullback into one of those levels.
- On the entry timeframe, wait for a trigger, such as a bullish engulfing candle or a break of a small downtrend line.
- Place the stop based on the entry timeframe structure and size the position accordingly.
Trade in the direction of the higher timeframe. When timeframes disagree, the higher one usually wins.
Quick answers
Looking at only one timeframe is like reading one page of a book. Multiple timeframe analysis uses three views: a higher timeframe for direction, a middle one for the setup and a lower one for the precise entry.
Trade in the direction of the higher timeframe. When timeframes disagree, the higher one usually wins.
Find the overall direction and major levels. The big picture sets the direction; lower timeframes refine the entry.
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