Open the Daily chart and look at the market structure over the last 3 to 6 months.
[Daily Chart] --> Identify Major Trend & Key Support/Demand Zones │ ▼ [4-Hour Chart] --> Wait for a Counter-Trend Pullback into the Zone │ ▼ [15-Hour Chart] --> Spot Reversal Patterns & Execute Entry with Tight Risk Step 1: Analyze the Daily Chart (The Compass)
Look for patterns (flags, wedges, breakouts) that align with the daily trend. Open the Daily chart and look at the
Look for a bullish candlestick pattern (like a hammer or engulfing bar) on the 1-hour chart to trigger the trade.
Multiple timeframe analysis solves these problems by creating a hierarchical filter. Step-by-Step Top-Down Trading Strategy Ready to take these
If your primary execution chart is the 15-minute chart, your macro trend chart should not be the 1-minute chart or the Weekly chart. It should be the 1-hour chart ( Recommended Timeframe Combinations Trading Style Trend/Macro Chart Medium/Setup Chart Entry/Execution Chart Swing Trading 4-Hour (H4) Day Trading 4-Hour (H4) 1-Hour (H1) 15-Minute or 5-Minute Scalping 1-Hour (H1) 1-Minute or 5-Tick 3. Step-by-Step Top-Down Trading Strategy
Ready to take these concepts to your trading desk? We’ve compiled a comprehensive guide including: 1-minute and Monthly).
Last updated: [Current Month, Year]. This feature is for educational purposes only. Past performance does not guarantee future results.
A common mistake is choosing timeframes that are either too close together (e.g., 5-minute and 10-minute) or too far apart (e.g., 1-minute and Monthly).