Hello! I'm SAKU!

In the previous two articles, I introduced the basic concepts of MTF analysis, but this time I plan to dive deeper into how to view each timeframe using actual charts!

The difficulty will gradually increase, so please keep up carefully!

If you haven't read the previous articles yet, please read the link below before this article.

Previous article→What are the roles of each timeframe in Multi-Timeframe Analysis? [MTF Introduction Part #2]

Two articles ago→About market fractality — What is Multi-Timeframe Analysis? — [MTF Introduction Part #1]

How to read charts in MTF Analysis

In MTF analysis,once you decide the anchor timeframe, you basically analyze by dropping down from the higher timeframe to the lower timeframes in order.to do so.

The flow is Higher Timeframe → Anchor Timeframe → Lower Timeframes, gradually understanding direction and conditionsas you proceed.

This is because if you start by increasing timeframes from the lower timeframe, your perspective can get tangled, and it’s easier to align with the broader trend by recognizing the conditions on the higher timeframe first.

As you become more accustomed, you can switch the timeframes and you’ll understand how price moves on each timeframe, so you can adjust the order according to the situation, but until you’re used to it, starting from the higher timeframe is better.

As a review of the previous article, the roles of each timeframe are roughly as follows.

・Higher Timeframe → grasp the overall trend

・Anchor Timeframe → main timeframe, setups etc.

・Lower Timeframe → grasp more detailed price movement

Examples using charts

Next, we will look at how to perform MTF analysis using actual charts!

Here, we set the anchor timeframe to 4 hours, the higher timeframe to daily, and the lower timeframe to 1 hour, and analyze the chart using MTF analysis as an example.

Also, in the chart images below, the parts enclosed in a box are viewed by dropping down to the lower timeframe.

1: Get a rough sense of the situation

First, let’s roughly grasp the daily timeframe on the higher side.

① The daily timeframe on the higher timeframe is generally rising. Next is the anchor timeframe.

Let’s look at the red-framed part of the daily chart on the 4-hour timeframe.

② The 4-hour anchor timeframe looks roughly downward. Let’s drop down to the lower timeframe.

We’ll view around the blue-framed area on the 4-hour timeframe in the 1-hour timeframe.

③ On the 1-hour lower timeframe, the movement is roughly rising.

Putting this together, it looks like the following.

【Gaze】
・Daily → Up
・4-hour → Down
・1-hour → Up

2: Grasp even more detailed situations

Earlier we did a rough directional grasp; now let’s understand the flow and situation a little more in detail.

First, the higher timeframe (daily).

① The daily is overall rising, but within the red frame highs are being temporarily lowered and lows are being lowered.

Next is the anchor timeframe (4-hour).

② Broadly it’s declining, but up to the blue-framed area lows are gradually rising and it begins to move upward.

Next is the lower timeframe (1-hour).

③ Overall it’s rising, but temporarily highs and lows are being lowered.

【Gaze and Situation】
・Daily → Rising while falling
・4-hour → Falling then rising
・1-hour → Rising while falling

3: Add line judgments

Next, we will add another line to the judgment in step 2.

From here the difficulty increases significantly, so read carefully and think through it.

First, the higher timeframe. (Lines drawn on the higher timeframe are in red)

① The steep rising trendline has been broken to the downside, but there is a channel line drawn from a gentler downward-sloping trendline below it waiting.

→ In daily view, traders who bought at the steep rising trendline may have taken profits, suggesting a temporary pullback.

Next is the anchor timeframe (lines drawn on the anchor timeframe are green)

② The 4-hour timeframe has broken above a downward trendline, a return move occurs (a move back to the line after breaking it). This indicates that selling on the 4-hour downward trendline (i.e., a pullback on the daily) may end, and price could rise (given the daily direction is up).

Next is the lower timeframe (lines drawn on the lower timeframe are light blue)

③ The 1-hour timeframe has broken above a downward trendline, with a return move occurring.

→ The sell on the 1-hour downward trendline (i.e., the return move on the 4-hour) ends, and price may rise toward the daily direction.

Putting it together, it looks like this.

【Gaze and Situation】
・Daily → Rising with a pullback on a steep trendline; channel line remains above

・4-hour → Falling then rising, return move after breaking a downtrend line

・1-hour → Rising with a pullback, return move after breaking a downtrend line on the 1-hour

If we were to go long at step 3’s point ③ (the pink circled area on the 1-hour)
There is a premise that the higher timeframe is rising, and that the higher timeframe is in a temporary pullback within a rising trend, and that a return move is occurring against the anchor timeframe’s downward trendline. We would determine that the action has ended on the lower timeframe and enter in the direction of the higher timeframe. Entry in the direction of the higher timeframe,

The basic principle is to follow the direction of the higher timeframe

This is not limited to MTF analysis, but the basic rule in trading isto follow the trend on the higher timeframe (trend-following, momentum trading).

Understand the general context on the higher timeframe, and if it’s rising, buy when the anchor or the setup also turns up, or at the moment it turns up, and follow the direction.That’s the idea.

And to gauge that timing, the next step is to drop down to the lower timeframe to inspect the anchor’s price movement details, in that order.

Avoid meaningless contrarian trading.

Moreover, many beginners don’t even know whether their contrarian view is against the higher timeframe, so make sure to be aware of the higher timeframe’s direction and follow the trend.

With that, that’s all for now!

Some of you may have felt the latter half was suddenly much more difficult.

When you think about multiple timeframes, it’s easy to get your gaze tangled, so reread several timesand practice a lotplease!

At first it will take time, but soon you’ll be able to judge at a glance!

Also, this time I split into three easy-to-understand stages, but once you’re accustomed, you can perform judgments on direction, situation, and lines simultaneously!

Even if you switch timeframes, make sure you know which timeframe and at what position and situation you are currently in and be ready to trade accordingly.

So,This marks the end of Part 1 to Part 3 of the MTF Introduction Coursefor now!

What we covered in this introduction isstill just the tip of the iceberg, butif this content is too difficult for you or you want to master MTF at a higher level, please check out my e-book (see the link below)!

It contains much more on MTF analysis and line trading, and how to understand and trade at a higher level, starting from basics and building upwith plenty of content to help you improve your trading skills!

Whether you continue with your current trading approach or upgrade your skills by gaining the MTF perspective that can be applied to any method is up to you!

For details on the author’s MTF trading method, see here ↓

→MTF Multi-Timeframe Analysis Essentials　(also available in a free trial)

【Limited-time campaign until 11/1 (Sun)!】

In this article, as an extra, we explain MTF analysis based on actual trades! ↓

【Bonus】Real Trade Analysis of MTF — Practical Example of Multi-Timeframe Analysis

If you found this article helpful, please like or give a heart!

From the next article, we will also deliver“Line Analysis Fundamentals”which is the foundation of MTF analysis! Stay tuned! →What is a horizontal line? Learn the basics of line analysis! — Horizontal line Part 1 — 【Line Analysis Fundamentals #1】