Understanding the Multi Timeframe Analysis – Part 1 of 2
Have you ever felt overwhelmed when using multiple timeframes in your analysis? Not sure which timeframes to choose or how to combine them effectively?
In this post, I’ll share my thoughts on how to use multi-timeframe analysis with real chart examples.
Let’s take a look at the movement from the first red and blue arrows – we can clearly see that buyers were not in control at that point. But if we compare it to the next red and blue arrows, it’s clear that buyers took control of the market.
This tells us something important:
➡️ The recent price drop from the last red arrow is likely just a corrective move, not a reversal.
Based on the 4-hour timeframe, we can identify the corrective target zone around 0.5593 - 0.5369.
So what’s next?
In smaller timeframes like the 1-hour chart, this corrective move might appear as a short-term bearish trend. But from a higher timeframe perspective, it’s just a pullback – and that can create an opportunity for a precise entry using a strategy like bottom fishing.
In the next post (Part 2), I’ll show you how this works on the 1-hour chart – including the before and after, and how I plan my entry.
Stay tuned!
Do you usually check the bigger timeframe before taking entries? Let me know your approach in the comments.
Have you ever felt overwhelmed when using multiple timeframes in your analysis? Not sure which timeframes to choose or how to combine them effectively?
In this post, I’ll share my thoughts on how to use multi-timeframe analysis with real chart examples.
Let’s take a look at the movement from the first red and blue arrows – we can clearly see that buyers were not in control at that point. But if we compare it to the next red and blue arrows, it’s clear that buyers took control of the market.
This tells us something important:
➡️ The recent price drop from the last red arrow is likely just a corrective move, not a reversal.
Based on the 4-hour timeframe, we can identify the corrective target zone around 0.5593 - 0.5369.
So what’s next?
In smaller timeframes like the 1-hour chart, this corrective move might appear as a short-term bearish trend. But from a higher timeframe perspective, it’s just a pullback – and that can create an opportunity for a precise entry using a strategy like bottom fishing.
In the next post (Part 2), I’ll show you how this works on the 1-hour chart – including the before and after, and how I plan my entry.
Stay tuned!
Do you usually check the bigger timeframe before taking entries? Let me know your approach in the comments.
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It looks like the price has bounced before reaching my support zone, and now we’re looking at three possible scenarios you need to watch out for:1. Bullish Triangle Formation — If the price continues to form higher lows and consolidates beneath resistance, it could be forming a bullish triangle, indicating a potential breakout to the upside.
2. Sideways Movement — If the price holds above the prior low but fails to break the resistance, it may range sideways between the prior high and prior low, showing indecision.
3. Double Top Pattern — If the price breaks below the prior low (acting as the neckline), it would confirm a double top pattern, a bearish signal suggesting a deeper correction.
The key level to watch is the prior low, which acts as support. Price reaction at this level will determine which scenario is more likely to play out. Be patient and let the market reveal its hand.
Which scenario are you leaning toward? Let me know in the comments!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.