Multiple Timeframe Analysis for Intraday Trading 

Back to: Trading with Smart Money

Multiple Timeframe Analysis for Intraday Trading 

In this article, I am going to discuss Multiple TimeFrame Analysis for Intraday Trading in detail. Please read our previous article where we discussed how to prepare for day trading before the market opens. As part of this article, we are going to discuss the following pointers in detail.

1. What is multiple timeframe analysis?
2. Understanding the trend with multiple timeframe analysis
3. How to use multiple time frame in trading
4. Advantages of multiple timeframe analysis

Multiple timeframe analysis for intraday trading

Tunnel Vision

Have you ever found yourself taking a picture-perfect setup on your primary timeframe chart only to see if not work and stops you out?  Traders should always understand the overall market environment and no just one-time frame

Advantages of using multiple time frames that we cover include:

• Allowing the trader to get a micro view of larger time frames, which can, in turn, confirm the trader’s original analysis of trade. It is like using a backup pattern and fine-tuning an entry. An example would be having a pattern on a 60-minute chart and using a 5-minute chart to confirm the entry.
• Risk can be managed more effectively by combining time frames. A trader can learn to move stops on smaller time frames for patterns that complete on larger time frames.
• Using multiple time frames from larger to smaller can help the trader to be aware of contrary or opposing patterns that form on smaller time frames that are against the longer-term time frame.

Let’s take day trading example

We will use 3-time frames for our decision making

1. Higher Time Frame (HTF) DAILY
2. Intermediate Time Frame(ITF) HOURLY
3. Trading Time Frame(TTF) 5MINUTES

Higher Time Frame (HTF) DAILY

The daily time frame for market overview and stock selection

FOR STOCK selection based on

• HTF support and resistance Or SUPPLY AND DEMAND ZONE
• HTF trend channel(demand and supply line)
• HTF SENTIMENT
• HTF SOS AND HTS SOW

Let’s analyze in chart

We have taken three stock-based on the above three stock selection method

Intermediate Time Frame (ITF) HOURLY

In this time frame, we will define the structural framework within which our trading timeframe (TTF)price action will move. In this time frame, we will

1. Indemnifying trend and
2. Marking the nearest supply and demand zone

Let’s analyze the above three chart in the intermediate time frame in above three chart

Trading Time Frame (TTF) 5 MINUTES

We will use a trading time frame(TTF) FOR

• Used for zone selection
• Used for entry, exit, and stop-loss placement

How to select a zone?

Step 1

Marking the nearest supply and demand zone

Step 2

Find where we are with respect to zone

1. If the trend up and we are at supply zone avoids long trend, we become sellers as the price at supply zone or wait for a clear breakout from supply zone.
2. If trend up we are at the demand zone look opportunity for long
3. If we are middle of the trend, we can go with the intermediate trend

Let’s go-to the trading time frame

Axis bank case study

Sun pharma case study

HDFC bank case study

Please watch the following video if you want to learn and understand the Multiple Timeframe Analysis for Intraday Trading concept in a better way.

Here, in this article, I try to explain the Multiple TimeFrame Analysis for Intraday Trading in detail. I hope you enjoy this article. Please join my Telegram Channel to learn more and clear your doubts. https://t.me/tradingwithsmartmoney.