About the fractal nature of the market ~ What is multi-timeframe analysis? ~【MTF Analysis Intro Part #1】
Hello! This is SAKU!
Previous articleUntil the previous article, we have been delivering a multi-part basic course on technical analysis,
Starting from this time,「MTF Analysis (Multi-Time Frame Analysis)as an introductory series, I plan to write a total of three articles!
In this first installment, we will cover the concept of「fractal」which is an important concept when learning MTf analysis!
MTF analysis may be a field that takes time to understand, but it is also a powerful tool, so let's study it properly!
What is MTf analysis (multi-time-frame analysis)?
First, in simple terms,what MTf analysis is, let's talk about.
“You should pay attention to the higher and lower timeframes!”
Those learning technical analysis may have heard something like this above.
This method, which analyzes by considering multiple timeframes such as higher and lower frames, is what is calledMTF (Multi-Time Frame) Analysisas a method of analysis!
Before getting into concrete MTf analysis, let's look at the concept you should know:「Fractal structure」
What is fractal structure?
Have you heard offractal structurebefore?
A fractal is said to be a self-similar shape with fractional dimensions, named by Benoit Mandelbrot.The word fractal itself was coined by Mandelbrot, but its root is the Latin fractatus, from which English words like Fraction, fragment, portion carry meaning.
Fractal-containing structures have the characteristic that a part of the structure resembles the whole (self-similarity or recursion).(Self-similarity or recurrence).
For example, natural objects like clouds in the sky, plants, snowflakes, coastlines, and the double-helix structure of DNA also have many fractal structures.
In this way, even when you magnify a part, you get a similar shape.
Fractal>Until the concept of fractals emerged, these spontaneously formed irregular and complex shapes were not given deep meaning (called accidental forms or automatic patterns).
However, with the advent of the fractal concept, these unpredictable phenomena can be given objectivity.
Even in the worlds of art and design, you could see many complex and irregular shapes, and artists expressed them unconsciously.
Incidentally, mandalas representing the universe and the taijitu showing yin and yang also exhibit self-similarity and self-recurrence.
What is the fractal nature of the market?
“I understand fractals are amazing, but where is the trading part?”
If you’re thinking that,
the reason I’m bringing this up is…
Yes! Because the market also has fractal properties!
Please look at the chart below.
The charts look quite similar, don’t they?
In fact, these are the daily chart, 4-hour chart, and 1-hour chart from top to bottom!
In other words, it means that
In other words,the market also has self-similarity.
This is the fractal nature of the market!
When examining past charts, you often find similar price movements across different timeframes.
In other words,what happens on higher timeframes can occur on lower timeframes, and vice versa.
This is how the reproducibility of technical analysis is created.
Knowing the fractal nature of the market is very important when performing MTF analysis!
That’s all for now!
From the next article onward, we will delve deeper into actual MTf analysis, so please search for similar scenes on your own charts for each timeframeand experience the market’s fractal nature!for yourself!
By the way, there are fractal-structured figures such as the Koch curve, Sierpinski gasket, and Cantor set, which might be interesting to look up!
The next article is here ↓
What are the roles of each timeframe in Multi-Time Frame Analysis? MTf Analysis Intro Part #2
By the way, in my e-book (see link below),there is a lot of content to deepen your understanding of MTF analysis and to trade at a higher level.
Methods to practice to master MTF analysis, setups (entry patterns) and trigger conditions, of course, as well as how to cut losses and take profits, and the underlying rationale and assumptionsare explained in detail, which will contribute to improving your trading skills, so if you’re interested, please check it out! By the way, as of now, there is a discount campaign active until August 31, 2026!
For details of the author’s MTF trading method, see here ↓
MTF Multi-Time Frame Analysis: The Essence(Discount campaign until August 31, 2026, 23:59!)