Why This Bearish Trend Is Actually a Bullish Opportunity?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.
