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Multiple timeframe analysis

Top-down analysis: choosing three timeframes, the job of each one and avoiding conflicting signals.

Why use several timeframes

An uptrend on H1 can be just a bounce inside a daily downtrend. Working top-down lets you trade with the main current and time entries more precisely. Alexander Elder formalised this in his Triple Screen method (1986).

Choosing three timeframes

Rule of thumbEach timeframe about 4–6 times the next one
IntradayH1 (trend) → M15 (setup) → M5 (entry)
Swing, a few daysD1 → H4 → H1
Position tradingW1 → D1 → H4

Workflow

  1. Higher timeframe: identify the trend and key levels. Trade only in that direction.
  2. Middle timeframe: wait for a setup (pullback to a zone, a pattern, an indicator signal).
  3. Lower timeframe: find an entry with a tight stop (CHoCH, a confirmation candle).
  4. Manage the trade on the middle timeframe; don't exit on lower-timeframe noise.
Watch outDon't watch too many timeframes. Three is enough; more just gives you more reasons to hesitate.

Try it on a chart

Educational content only, not investment advice. Practise on a demo account before using real money.