Multi-Time Frame Analysis (MTF Analysis)

Not only using a single time frame (e.g., 15-minute bars), but by combining multiple time frames (e.g., 1-minute, 15-minute, 1-hour, 4-hour, daily, etc.), you can grasp the overall market picture more accurately and improve trading precision.

Generally, it is common to confirm the long-term trend or direction on a higher time frame and time entries on a shorter time frame.

MTF Analysis Basics

The core of MTF analysis is the principle of "higher-time-frame priority."

The trend on the long-term (higher) time frame functions to filter signals on the short-term (lower) time frames.

This strengthens trend-following trades.

Advantages and Disadvantages

・Advantages

・Allows multi-faceted assessment of trend strength and reduces failures of counter-trend trades (e.g., if a short-term price drop is a consolidation within an uptrend on the higher time frame, it can be a buying opportunity).

・Improved win rate: In backtests, adding MTF alongside a single-time-frame approach often increases win rate by 10-20%.

・Mental relief: Confidence to enter after checking the higher time frame.

・Disadvantages

・Analysis takes time: Requires monitoring multiple charts.

・Signal lag: You might miss entry opportunities by waiting for confirmation on the higher time frame.

・Overcomplication: Increasing the number of time frames can make judgments ambiguous.

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