Understanding Timeframes
Detailed content
Timeframes
Use multi‑timeframe analysis: HTF defines bias and levels; MTF refines zones; LTF gives triggers with defined risk.
Mapping
- Scalping: HTF H1, MTF M15, LTF M1–M5
- Day: HTF H4/D1, MTF H1, LTF M5–M15
- Swing: HTF D1/W1, MTF H4, LTF H1
Real Example: Multi-Timeframe EURUSD Trade
Date: March 15, 2024; Style: Day Trading
Step 1: HTF Analysis (D1)
- Trend: Strong uptrend since February
- Key levels: Support at 1.0850 (prior swing low), Resistance at 1.0950
- Bias: BULLISH — only look for long entries
- Entry zone: 1.0850–1.0870 (support area)
Step 2: MTF Analysis (H1)
- Structure: Price retracing to 1.0860 area
- Indicators: RSI at 42 (approaching oversold in uptrend), 20‑EMA at 1.0865
- Zone: 1.0860–1.0870 is confluence (D1 support + H1 EMA)
- Wait for: Bullish candle reversal or break above minor resistance at 1.0875
Step 3: LTF Entry (M15)
- Price reaches 1.0862
- Forms bullish engulfing candle at 09:15 GMT
- RSI on M15: 38 (oversold bounce forming)
- Entry trigger: Long at 1.0865 (break of engulfing candle high)
- Stop: 1.0850 (below D1 support, 15 pips risk)
- Target 1: 1.0895 (prior H1 swing high, 30 pips = 2R)
- Target 2: 1.0920 (D1 resistance area, 55 pips = 3.67R)
Trade Execution & Result
- Size: Account $20,000, risk 1% = $200. Pip value $10/lot. Size = 200 ÷ (15 × 10) = 1.33 lots (round to 1.3)
- Entry: 1.0865
- Price action: Rises steadily, hits T1 at 1.0895 → Close 50% (+$390)
- Management: Move stop to 1.0875 (breakeven + 10 pips)
- Final: T2 hit at 1.0920 → Close 50% (+$715)
- Total profit: +$1,105 (5.53R)
- Time in trade: 4 hours 20 minutes
Timeframe Selection Guide
| Style | HTF | MTF | LTF | Avg Trade Duration |
|---|---|---|---|---|
| Scalping | H1 | M15 | M1–M5 | 5–30 min |
| Day Trading | H4/D1 | H1 | M5–M15 | 1–6 hours |
| Swing | D1/W1 | H4 | H1 | 2–10 days |
Common Mistakes
- Trading LTF against HTF: Scalping shorts on M5 when D1 is clearly bullish → Low win rate
- Solution: Always check HTF first; only trade in HTF direction
- Entering on HTF without LTF confirmation: Buying D1 support immediately without waiting for M15/M5 reversal
- Solution: HTF shows where, LTF shows when