Trading glossary
What is multi-timeframe analysis?
Multi-timeframe analysis means reading the same market on a higher and a lower timeframe so that trade ideas fit the bigger trend.
A move that looks like a strong downtrend on a 15-minute chart may be a pullback in a daily uptrend. Multi-timeframe analysis starts with the higher timeframe for direction and key levels, then uses the lower timeframe for detail.
A common approach is a ratio of about four to six between timeframes, such as daily, four-hour and one-hour.
How traders use it
- Read the higher timeframe's structure and levels first.
- Look for lower timeframe setups that agree with it.
- Treat a conflict between timeframes as a reason for caution.
Example
On the daily chart, EURUSD is in an uptrend above support at 1.0800. On the one-hour chart, price has just pulled back into 1.0810 and formed a higher low. The lower timeframe setup agrees with the higher timeframe trend.
Frequently asked questions
Which timeframes should I use?
It depends on how long you hold trades. Pick one for direction, one for structure and one for timing, a few steps apart.
Can Analytix-AI analyse several timeframes at once?
Yes. Professional plans can upload up to 3 charts of the same market and Enterprise up to 4, and the analysis reads them together.
Related terms
Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.