“All of the higher timeframes” — Why I say that over and over

I have repeated it many times: "Look at the higher timeframes." "The higher timeframes are everything." Some people may find this pushy. But there is a clear reason why I keep saying it.Because there are far too many traders who ignore the context of the higher timeframes and trade using only the lower timeframes. And that is the biggest cause of losses.

From here, we move into multi-timeframe analysis (the method of looking at multiple timeframes). The core of this is the importance of the “higher timeframe.” This time, I will carefully explain why the higher timeframes are so important.

The relationship between higher and lower timeframes

First, let's organize the relationship between higher and lower timeframes. The higher timeframe refers to charts with longer time scales (daily, 4-hour, etc.). The lower timeframe refers to charts with shorter time scales (5-minute, 15-minute, etc.).The higher timeframe represents the market's “big trend,” while the lower timeframe represents the “fine movements.”

What is important here is the balance of power between the two.The big trend (higher timeframe) controls the finer movements (lower timeframes).If the higher timeframe is in an uptrend, even if the lower timeframe temporarily moves down, it tends to be pulled back in the direction of the higher timeframe's trend. Like a river (the higher timeframe) with small whirlpools (the lower timeframe) swirling, eventually the current swallows them. It’s the same idea.

The danger of looking only at the lower timeframe