Hello! I’m SAKU!

In the previous two installments I introduced the basic concepts of MTF analysis, and this time I would like to dive deeper using actual charts to explore how to view each time frame.

The difficulty will gradually increase, so please keep up with me!

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

Previous article →What are the roles of each time frame in Multi-Time Frame Analysis? [MTF Analysis Intro Part #2]

Two articles ago →About market fractality – What is Multi-Time Frame Analysis? – [MTF Analysis Intro Part #1]

How to Read the MTF Analysis Chart

In MTF analysis,once you decide the anchor timeframe, you basically analyze by first going from the higher timeframe to the lower timeframes step by step.and so on.

The flow is Higher Timeframe → Anchor Timeframe → Lower Timeframe to grasp the direction and conditions in order.So it’s like that.

This is because raising the timeframe from the lower to higher can scatter your line of sight, whereas recognizing the overall environment by starting from the higher timeframe helps you follow the big trend more easily.

As you get used to it, you can switch timeframes, and you’ll understand roughly where the price action of each timeframe sits within the other timeframes, so you can change the order according to the situation, but until you’re used to it, it’s better to start from the higher timeframe and drill down.

To review the previous article, each timeframe’s role is roughly as follows.

・Higher Timeframe → grasp the overall trend

・Anchor Timeframe → main timeframe, setups, etc.

・Lower Timeframe → grasp more detailed price action

Examples Using Charts

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

Here, let’s take the anchor timeframe as 4 hours, the higher timeframe as daily, and the lower timeframe as 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 being interpreted in terms of the lower timeframe.

1: Get a rough sense of the situation

First, let’s roughly grasp the situation from the higher timeframe: the Daily.

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

Look at the red-framed part of the daily on the 4-hour chart.

② The 4-hour anchor looks like it’s trending down roughly. Let’s drill down to the lower timeframe.

We’ll look at the 1-hour timeframe around the blue-framed area of the 4-hour chart.

③ On the 1-hour timeframe, it’s broadly rising.

Putting this together, it looks like this.

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

2: Grasp more detailed conditions

Earlier we captured the general direction; now let’s understand the flow and conditions a bit more in detail.

First, the higher timeframe (Daily).

① The Daily is generally rising, but in the red-framed area price temporarily makes a lower high and lower low.

Next is the anchor timeframe (4-hour).

② Broadly it is falling, but until reaching the blue-framed area it gradually pulls up the lows and starts to rise.

Next is the lower timeframe (1-hour).

③ Overall it’s rising, but temporarily makes a lower high and lower low.

【Perspective and Situation】
・Daily → Rising but with a pullback
・4-hour → Falling then beginning to rise
・1-hour → Rising but with a pullback

3: Add line judgments

Next, let’s add lines to step 2 and judge from them.

The difficulty level will jump significantly from here, so please read carefully and think through it.

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

① The steep rising trend line was broken to the downside, but a channel line drawn from a gently sloped downward trend line below is looming.

→ At the daily level, the sharp upward trend line may indicate profit-taking by those who bought on the rise, i.e., a temporary pullback.

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

② The 4-hour downward trend line has been broken to the upside, a return move (price briefly returns to the line after breaking it) occurs.

→ At the 4-hour level, selling on the downward trend line ends, and there is a possibility of rising (since the overall direction on the daily is up).

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

③ The 1-hour downward trend line has been broken to the upside, and a return move occurs.

→ At the 1-hour level, selling on the downward trend line ends, and there is a possibility of rising toward the daily direction.

Putting it all together, it looks like this.

【Perspective and Situation】
・Daily → Rising with a pullback, the sharp trend line breaks downward, keep above the channel line

・ 4-hour → Beginning to rise after a fall, a return move occurs after breaking the downward trend line

・1-hour → Rising but with a pullback, a return move occurs after breaking the downward trend line on the 1-hour chart

If you were to long here at 3) (the pink circle on the 1-hour chart)
“The higher timeframe is rising” is the premise, and “the higher timeframe is in a temporary pullback during an uptrend” under, “a return move on the anchor timeframe’s downward trend line is occurring”, and enter in the direction of the higher timeframe,

The basics are to follow the direction of the higher timeframe

This is not limited to MTF analysis; the core of trading is following the trend in the direction of the higher timeframe (trend-following / going with the trend).

If the higher timeframe shows an overall uptrend, then when the anchor timeframe also moves up or when it is about to turn up, buy and follow the direction.

And to time that, you drill down to the lower timeframe to observe the details of the anchor timeframe price movement, in that order.

Stop chasing meaningless counter-trend moves.

Moreover, many beginners don’t even know whether a move on the higher timeframe is a counter-trend to it, so be sure to be mindful of the higher timeframe direction and learn to follow the trend.

That’s all for now!

Some of you may feel the latter half of this article jumped in difficulty.

When you think about multiple timeframes, your perspective can get tangled, so reread it several timesand practice a lotplease!

It may take some time at first, but you’ll be able to judge at a glance before long!

Also, for clarity, this introduction was explained in three stages, but as you get used to it you can perform judgments on direction, conditions, and lines simultaneously!

Even when you change the timeframe, be sure you understand which position and situation you are in on which time axisbefore you trade.

With that, we’re done for now!The three-part MTG Intro Courseends here for the moment!

The content covered in this introductory part isstill only the very beginningthough,if this content felt too difficult or if you want to master MTG at a higher level, please check out my e-book (see link below)!

It contains a lot of material to deepen your understanding of MTF analysis and line trading at a higher level, and to master trading from the basics!

Practice methods to master MTF analysis, setup (entry patterns) and trigger conditions, as well as methods for stop loss and take profit, with the underlying reasoning and premises explained in detail,

Whether you continue with your current trading method or level up by adopting MTG’s perspective that can be applied to any technique is up to you!

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

→MTG Multi-Time Frame Analysis Essentials

In this article, as a bonus, we explain MTG analysis based on actual trades we performed! ↓

【Bonus】Real Trade Analysis of MTG: A Practical Example of Multi-Time Frame Analysis

If you found this article helpful, please like it or give it a heart! It would be encouraging!

From the next post, we will deliver the“Line Analysis Basic Course”which is the foundation of MTG analysis—stay tuned!What is a horizontal line? Learn the basics of line analysis! – Horizontal Line Part 1 – Line Analysis Basic Course #1