What do you do when the candlesticks are facing in different directions?
What Do You Do When Time Frames Are Facing in Different Directions?
What you do in such moments reveals a trader's true ability.
When you look at multiple time frames in a multi-timeframe setup, you will inevitably encounter a situation.Each time frame is facing a different directionat that moment. The higher time frame is in an uptrend, while the lower time frame is descending. Or vice versa. In such moments, what do you do?
In fact, the real skill of a trader appears in how you handle times when the time frames do not align. As explained last time, when three time frames are coordinated, but when those three do not align, correct judgment is required. This time, we will carefully explain how to cope with this difficult situation.
Divergence is, in fact, a normal state
First, you should know thatit is not abnormal for time frames to be faced in different directions; it is actually normal. It is not the case that all time frames always point in the same direction.
Because even when the higher time frame is in an uptrend, there is always a temporary pullback in which the lower time frames show a decline. In other words, a state where “the higher time frame is rising and the lower time frames are falling” is a natural occurrence during an uptrend’s pullback. There is no need to panic when you see divergence.
The principle of “priority to the higher time frame”
So, how do you judge when they are divergent? The principle is simple.Prioritize the higher time frame.As explained previously, the larger trend (the higher time frame) governs the finer moves (the lower time frames).
If the higher time frame is in an uptrend, even if the lower time frame is descending, the direction you aim for does not change to “buy.” The lower-time-frame decline is more likely a temporary pullback within the uptrend. Therefore, you aim for the point where that decline (the pullback) ends and the price resumes rising.Do not be drawn by the divergent movements of the lower time frames; make the direction of the higher time frame your axis.