Multi-Timeframe Analysis
The practice of reading price action across multiple timeframes to align the higher-degree trend with lower-timeframe entries.
Multi-Timeframe Analysis (MTF) is the discipline of checking at least two — typically three — timeframes before executing a trade: a higher timeframe for directional bias, a mid timeframe for the setup, and a lower timeframe for the entry trigger.
A common structure is the "top-down" approach:
- Weekly / Daily: trend direction and major levels.
- 4-hour / 1-hour: setup and pattern forming.
- 15-min / 5-min: precise entry trigger and stop placement.
Trading a lower-timeframe long against a daily downtrend is a classic losing pattern MTF analysis prevents.