The most logical way to apply MTFA is with a top-down approach. You always start your analysis at the highest level and work your way down to the finest details.
Used for trend identification and identifying major support/resistance levels. Intermediate (e.g., Daily/Hourly):
Used for precise trade execution, identifying specific price action signals, and managing risk. Key Concepts in Brian Shannon’s Framework The Four Market Stages technical analysis using multiple timeframes pdf
Finally, drop down to your lowest timeframe to hunt for your entry trigger.
: Your process begins here. Your only job on this chart (e.g., Daily) is to determine if the market is in an uptrend, a downtrend, or a range. Mark major support/resistance levels. Your trade bias for the entire session or week must align with the direction you establish on this chart. The most logical way to apply MTFA is
Even experienced traders can misuse MTFA. Avoiding these pitfalls is essential.
Technical analysis using multiple timeframes is not a "secret indicator" – it is a decision-making framework. It separates gamblers (who look at one chart) from professionals (who understand the market's structural hierarchy). Intermediate (e
Rule: If the macro chart is in a strong uptrend, you are looking for buy setups on the lower timeframes. Step 2: The Tactical Chart (The Map)
