Multiple Timeframes
In the same market, the daily chart can be in an uptrend while the 5-minute chart is falling. Learn to look at the bigger timeframe first, then the smaller one.
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Text version · Technical Analysis: Candles & Charts, lesson 6: “Multiple Timeframes”
In the same market, the daily chart can be in an uptrend while the 5-minute chart is falling. Learn to look at the bigger timeframe first, then the smaller one.
Same move, different timeframes
Merge candles from a small timeframe and you get the candles of a bigger one. The longer the timeframe, the steadier the trend and the less noise.
Big timeframe for direction, small timeframe for entries
When the daily is rising and the hourly is pulling back, trend followers usually wait for the smaller-timeframe pullback to end before going long. When timeframes disagree, the bigger one carries more weight.
How many times apart the timeframes are
A common approach is a set of three timeframes, each about 4–6× apart: daily for direction, 1 hour for rhythm, 15 minutes for entries. Too close together and you can't see a difference; too far apart and the rhythms don't line up.
Key takeaways
- The longer the timeframe, the steadier the trend and the less noise.
- A common approach: use the bigger timeframe for direction and the smaller one to find entries. Neighboring timeframes about 4–6 times apart work well.
- When signals on different timeframes conflict, the bigger one usually carries more weight; trading against it has a lower success rate.
Try it yourself
You can do these exercises in this lesson's interactive simulation:
- Switch from "Daily" down to "5 minutes": which of the five direction arrows on the right point up, and which point down? How much space does the cyan zone take up on each timeframe?
- Compare each timeframe's "Directional efficiency": which timeframe has the most noise?
- On the 4-hour chart, hover over any candle: how many 5-minute candles does the zoomed view below show it's made of?
- Click "Practice": first choose "Long with the daily" and find an entry on the 15-minute chart, then start over with "Short against the daily" and compare the two results.
Quiz and explanations
- 1. The daily chart is in an uptrend and the hourly chart is pulling back. A trend-following trader will usually…
- Answer: Wait for the smaller-timeframe pullback to end, then go long.The bigger timeframe sets the direction; the smaller one finds the timing.
- 2. Which timeframe has the most noise?
- Answer: 1-minute.The shorter the timeframe, the bigger the share of random movement.
- 3. You usually look for entries on the 1-hour chart. Which timeframe is better for judging the overall direction?
- Answer: The 4-hour or daily chart.The bigger timeframe needs to be several times longer than your entry timeframe to filter out its noise.
Terms in this lesson
- timeframe (Timeframe): How much time each candle covers, such as 5 minutes, 1 hour, a day or a week.