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Market Mechanics Ep 11: Top Down Analysis Strategy — Transcript

by Brad Goh (The Trading Geek) · 9,622 words · 1,495 segments · language en · Watch on YouTube

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0:00One of the biggest reasons traders stay
0:02confused is because they keep switching
0:04time frames without actually knowing
0:07what each time frame is supposed to do.
0:10So, they look at the 4-hour time frame
0:12and then the 1-hour time frame, then the
0:1415-minute time frame, then the 5-minute
0:16time frame, and by the time they are
0:18ready to enter the trade, they are
0:20completely lost. They look at one time
0:23frame and they think that price is
0:25actually very bullish right now. And
0:27then they switch to another time frame,
0:29then they see price is actually very
0:31bearish. So, in this case, should I
0:33enter for a buy or enter for a sell?
0:35Now, the problem is usually not the
0:38chart. The problem is that they do not
0:41yet understand how to read multiple time
0:44frames together. They don't understand
0:47that multiple time frames doesn't mean
0:50the market is doing different thing. It
0:51just shows you the different layers of
0:54the market itself.
0:57Multi-time frame analysis is not just
0:59about looking at more charts. It's about
1:01knowing what each time frame is telling
1:03you and how they all work together.
1:07So, that's what we're covering in this
1:09lesson. So far, we have already covered
1:11a lot of very important concepts like
1:14market structure, supply and demand,
1:16premium and discount, fair value gaps,
1:17order blocks, all this good stuff. In
1:20this lesson, I want to show you how to
1:21combine these ideas across multiple time
1:24frames.
1:25The higher time frame will give you the
1:26bigger story. The lower time frame will
1:29allow you to trade with precision. So,
1:31you need to understand how they all work
1:33together.
1:35When you do, your analysis will be a lot
1:37more clearer.
1:38Right. So, with that being said,
1:40as usual, I'm just going to go through
1:42the theory first, right? Just understand
1:45the chart diagrams, understand the logic
1:47behind multi-time frame analysis and why
1:49we use it. Then later, we are going to
1:51go into the charts and apply this. Okay?
1:54So, what is multi-time frame analysis?
1:56Multi-time frame analysis is basically
1:59the process of reading the market from
2:02higher time frames down to the lower
2:05time frame in order to understand the
2:07bigger picture and find direction and
2:10refine execution.
2:12Quite simply put, you are using multiple
2:14time frames so that you can determine
2:16the trend direction, so you can trade
2:18with smart money,
2:20and still at the same time trading with
2:23sniper-like precision on the lower time
2:25frame itself.
2:26So, it's not just about checking random
2:28time frames, it's about understanding
2:30each time frame and using each time
2:33frame for a very specific job. You are
2:36supposed to use the higher time frame to
2:37do this, the medium time frame to do
2:38that, and the lower time frame to do
2:41this.
2:43Now, going down the time frames is like
2:45zooming into price action.
2:47That is why I view top-down analysis or
2:49multi-time frame analysis or whatever
2:50you like to call it as having a
2:52microscope. You know, just zooming into
2:55what price is doing on the lower time
2:57frames itself. Right? That's just you
2:59looking at like what you can't see with
3:02your bare eyes itself.
3:04And the reason why we use multi-time
3:05frame analysis is because if you don't,
3:08what tends to happen is that you're
3:09going to get strapped trading against
3:12the bigger trend. Right? For example, if
3:14you just only look at the 5-minute time
3:15frame and you neglect the daily time
3:17frame, what tends to happen is that you
3:19look for a sell because the 5-minute
3:21trend direction is bearish. But then
3:23next thing you know, price starts going
3:24up significantly because the higher time
3:27frame trend, the daily time frame trend
3:29is actually bullish. And the higher time
3:31frame trend will always have much more
3:32power and control over the lower time
3:34frame trend. So, as a result, you get
3:37trapped in
3:38the wrong direction because you
3:40neglected this multi-time frame
3:43analysis.
3:46So, when you have multi-time frame
3:47analysis, what tends to happen is that
3:48you have a lot more clarity over the
3:51trend direction, which also means that
3:53you will get better timing of your
3:55entries, and it also means that you will
3:58stop forcing trades in the wrong
3:59context.
4:02So, the like I said earlier, the higher
4:04the time frame, the more powerful the
4:05information is.
4:07The monthly time frame will be much
4:09stronger than the weekly time frame. The
4:10price action that you see on the weekly
4:12time frame is going to be much more
4:14stronger and much more significant than
4:16the ones that you see on the daily time
4:18frame, daily over the 4-hour, and so on
4:20and so forth. Right? You basically get
4:21my point. The higher the time frame, the
4:24stronger the price action is.
4:27So, if I see like a big bullish
4:29candlestick on the daily time frame,
4:32this tells me that over the next few
4:33days, there's a very high chance for
4:35price to remain bullish compared to if I
4:37see the same bullish candlestick on a
4:391-minute time frame.
4:41It might just not have as much
4:43significance as the one that has
4:45appeared on the daily time frame. Right?
4:46Because yes, higher time frame, much
4:48more significance, much more powerful.
4:52So, when it comes to multi-time frame
4:54structure, you must understand this
4:56logic right here. If you understand this
4:59logic, everything becomes much more
5:00simpler. And that is the fact that a
5:02higher time frame trend is a lower No, a
5:06higher time frame run is a lower time
5:07frame trend. So, what I basically mean
5:09by that is that once again, just
5:11applying the concept of market
5:13structure,
5:14price is creating higher highs, higher
5:15lows. This is a uptrend, right? So, this
5:17entire move right here is a trend.
5:20But within this trend itself, there are
5:23certain legs, right? So, we will call
5:25each one of these leg a run. Right? So,
5:27price goes up, pulls back, goes up,
5:30pulls back, creating higher highs and
5:32higher lows. Right? So, each one of
5:34these leg where price is pulling back or
5:36price is continuing is counted as a run.
5:39So, looking at this, it basically said a
5:41higher time frame trend is a a higher
5:43time frame run is a lower time frame
5:44trend. So, what it basically means is
5:46that within this entire leg itself,
5:50it might look like a straight line on
5:52the higher time frame, but if you go
5:53down to the lower time frame itself, you
5:56will see price creating higher highs and
5:58higher lows.
5:59Right? Because that's what price will be
6:01doing on the internal structure on the
6:03lower time frame trend.
6:05And that's what formed this entire leg
6:07itself.
6:08So, just to give you an example on what
6:10that essentially means, right? So,
6:12this right here, this right here,
6:15is a run, another run, and another run,
6:18and another run. Right? So, every time
6:19price move up is a run. And then if you
6:22look at it using a microscope, right?
6:24Which means you jump down to the lower
6:26time frame and look at this entire leg
6:29right here, what you will see is these
6:31gray lines that we have behind the thick
6:34black lines right here. This is like the
6:36lower time frame structure where price
6:38is creating higher highs, higher lows,
6:40higher highs, higher lows on the lower
6:41time frame itself. And then later on,
6:43you can see the lower time frame start
6:45shifting bearish first, then the higher
6:47time frame start shifting bearish later
6:49on.
6:50Okay? So, this is what we mean when I
6:52say that um price is fractal. The market
6:55is fractal. So, whatever happens on the
6:57higher time frame, it must first happen
6:59on the lower time frame itself.
7:02So, another example right here, right?
7:04This one is a little bit more complex,
7:06but just to show you this entire logic.
7:09So, the daily time frame could just be
7:11price goes up, pulls back, and then goes
7:13up. Right? Just give you like this blue
7:14line that you can see on the screen
7:15right here. But remember, within this
7:17line itself, if you go down one time
7:20frame lower, right? So, let's say you
7:22jump from the daily time frame to the
7:234-hour time frame, what you will see is
7:26the price creating higher highs and
7:27higher lows to form this daily time
7:30frame trend, this daily time frame run
7:33right here. Right? So, this one daily
7:36time frame run is actually a 4-hour
7:39time frame trend.
7:41Same thing right here, right? And same
7:43thing right here. And then within the
7:454-hour time frame run, right? Which is
7:48this push to the upside, pulls back, and
7:50then push to the upside, and push back.
7:52If you look at each one of these leg, it
7:54also further comprises of trends that is
7:57going on on the lower time frame,
7:59perhaps on the 15-minute time frame
8:00itself. Right? So, if you look at this
8:02right here on the 4-hour time frame, it
8:04might look like a straight line just
8:05like this. But if you jump down to the
8:0715-minute time frame, this is where you
8:09start seeing price creating higher
8:10highs, higher lows, higher highs, and
8:11higher lows, and all of that
8:14comes together and form this entire
8:164-hour leg here. Same thing within this
8:1915-minute trend itself, there's also
8:20your 1-minute trend itself, your lower
8:23time frame trend, right? That is going
8:25on um
8:26in a microscope microscopic level. Yeah.
8:29So, you basically get my point right
8:31here. So, when you perform multi-time
8:34frame analysis, what you are doing is
8:35that you're analyzing the charts from
8:36the higher time frame down to the lower
8:38time frame.
8:39The higher time frame tells you like
8:41where's the institutional flow of money.
8:43The lower time frame tells you the
8:44precise place and time you want to enter
8:47the trades. Right? Which is something
8:49that we're going to talk about later on.
8:51So, your lower time frame price action
8:54forms your higher time frame price
8:56action. Okay? So, literally like what
8:58we've mentioned, a higher time frame
9:00trend, a higher time frame run is a
9:02lower time frame trend. So, all of these
9:04lower time frame trends, higher high,
9:06higher lows, comes together to form your
9:08higher time frame run, which is just one
9:10straight line to the upside.
9:13And your higher time frame price action
9:15create your higher time frame runs,
9:16right? Like this move to the upside or
9:18to the downside,
9:19which in turn
9:21creates your lower time frame trends,
9:24and then that make up your lower time
9:25frame price action.
9:28So, the lower time frame has to shift
9:29first before the higher time frame
9:31actually shift.
9:33So, the same patterns actually repeat
9:34themselves over and over again. Whatever
9:37happens on the higher time frame, must
9:39first happen on the lower time frame.
9:41So, whatever principles that you guys
9:43have been learning when it comes to
9:44market structure, when it comes to
9:46supply and demand, when it comes to
9:47premium and discount, you can apply it
9:49across every single time frame. But just
9:52understand that if you apply it on the
9:55higher time frame,
9:56it's for a different reason compared to
9:58if you're applying it on the lower time
10:00frame itself.
10:02So, it might take a little bit longer
10:04for the trade
10:06or the idea to actually play out on the
10:08higher time frame because
10:10you can apply the same strategy, the
10:12same concept because of the time frame
10:14that you're applying it in
10:16there's going to be like a different
10:16time horizon in which the idea can
10:19essentially play out.
10:22So, as traders, as market mechanics
10:25traders, we typically use these three
10:27time frames. A higher time frame, a
10:29medium time frame, or a lower time frame
10:32itself.
10:33And like I said, each one of these time
10:35frames serve a specific purpose.
10:38You need all three time frames. You
10:40cannot just have one time frame.
10:42You need all three in order to make
10:44sense of the market. In order for you to
10:47define a trend direction
10:49so that you can actually develop a trade
10:51idea, so that you can actually get in at
10:53the best price, at the right place, at
10:55the right time.
10:58At the right trade idea, right? So,
11:00remember I think in one of the first few
11:02lessons I talked about how success in
11:03trading requires you to form the right
11:05trade idea at the right place, at the
11:08right time. So, that's what this
11:10multi-time frame analysis is about. It
11:12allows us to achieve that.
11:14So,
11:16I'm going to show you some examples on
11:17like what time frames that you can
11:19potentially use as a higher time frame,
11:21medium time frame, and lower time frame
11:22later on. But for now, I just want you
11:24to really just understand the purpose of
11:26each one of these time frame right here.
11:29The higher time frame is used to build
11:31the narrative.
11:32It's used to identify the trend
11:34direction.
11:37Okay, so this is the time frame that
11:38tells you who's in control of price,
11:40supply or demand, buyers or sellers.
11:43Right, this is where you can determine
11:44the prevailing trend direction so you
11:46can trade with it.
11:48So, when you are on the higher time
11:50frame, you want to be asking yourself
11:52these few questions.
11:54Is the market bullish, bearish, or
11:57ranging?
11:59What is What is price relative to key
12:01supply and demand?
12:03Is price in premium or discount?
12:06What liquidity is nearby? Once again,
12:08something that we can talk about in the
12:09next few lessons. Are we approaching an
12:11order block, fair value gap, or a major
12:13zone?
12:14Because if we are, then we are expecting
12:15a reaction from that area.
12:18And then for your medium time frame,
12:19this is where you're using it to
12:20determine your immediate bias, which is
12:23what price is doing right now.
12:25And you can also use it to identify your
12:27point of interest, aka your supply and
12:29demand zones, your order blocks, your
12:31flip zones, your liquidity zones.
12:34So, after the higher time frame gives
12:35you the trend direction, the medium time
12:37frame helps you refine the dealing
12:39range, the range in which you want to
12:41focus on, the exact zone in which you
12:43want to enter the trade from, the
12:45internal structure, and whether price is
12:48approaching your area properly.
12:50Right? So, medium time frame is like
12:52that sweet spot between the higher time
12:53frame and the lower time frame. It's the
12:55middleman, essentially.
12:57Okay, so it allows you to like just get
12:58more clarity over what price is doing,
13:01gather more evidence, right? Before you
13:03actually look for your entry.
13:06And also determine like exactly where
13:08you are looking for your entry, which is
13:09usually your point of interest, right?
13:11Your supply and demand zones or your
13:12order blocks.
13:13And then, once price mitigates or
13:16touches or enters the medium time frame
13:19point of interest, your supply and
13:20demand zones, your order block, once
13:21again, this is where you can jump down
13:23to the lower time frame.
13:25And the lower time frame is for
13:27you to wait for price to enter into your
13:29area, and then when it does, look for
13:31your entry confirmation, look for your
13:33entry model, and then once that presents
13:35itself, you enter into the trade with
13:37confidence, without any fear, without
13:40any hesitation, you just enter with
13:43confidence once you have seen your
13:44confirmation on this time frame itself.
13:47And this is where you can refine your
13:48entry, you can have your tight stop
13:50loss, and place your take profit right
13:51here.
13:53So, as you guys can see, each one of
13:55these time frame has a specific purpose,
13:58and if you combine all of them together,
14:00you will be able to see the market for
14:02what it is.
14:03You will have the best chance to
14:06actually read price for what it actually
14:08is.
14:10So, yeah, let Make sure you utilize
14:12these three time frames itself.
14:15So, with that being said, let's go on to
14:17the charts right now and try to apply
14:19all of these theories that we have just
14:21learned.
14:22So, I'm going to give you some example,
14:24right? Maybe the first example that I
14:26want to showcase to you guys is
14:29on EUR/USD, right? So, let's look at
14:31EUR/USD chart together right here.
14:37Okay, so
14:38here
14:40on the top left-hand corner, you have
14:41seen I've laid out a set of time frames,
14:44right? For you guys to actually copy.
14:46Depending on your trading style, you're
14:48going to be using a different set of
14:49time frames. So, it's very important
14:51that you actually take the time out to
14:53determine which trading style suits you
14:55the best. Right? And you're able to find
14:57out based on your commitments, your
15:00lifestyle, your risk tolerance, and your
15:02goals. Okay, so once you have decided
15:04which trading style, right? You want to
15:06specialize in, whether that's swing
15:08trader, which is people who are holding
15:09the trade for more than 24 hours, after
15:11a few days, or even a few weeks, or a
15:13day trader, which which is just opening
15:16and closing a trade within 24 hours, not
15:18trying to hold the trade overnight, or
15:20scalpers, which is the short-term
15:22traders who are getting in and out
15:23within a few minutes, anywhere under
15:25less than an hour.
15:27Once you have decided which trading
15:28style you want to
15:30specialize in
15:32find that trading style, and then stick
15:34to the set of time frames that you're
15:35assigned to.
15:37Okay, so if you're a scalper, this is
15:38the time frame that you're going to be
15:39using.
15:40If you are swing trader, this is going
15:41to be the time frame that you're using.
15:43And this will be your higher time frame,
15:45this will be your medium time frame, and
15:46this will be the your lower time frame.
15:49Okay, so yeah, just now we have already
15:51like talked about the purpose on like
15:54each one of these time frames. I'm not
15:56going to dive deeper into this right
15:58here. I'm just going to show you how to
16:00actually do this multi-time frame
16:02analysis or top-down analysis right
16:04here.
16:05So, in this case, I'm just going to use
16:08um the day trader set of time frames as
16:10an an example for you guys, right? So,
16:13I'm going to be a day trader, which
16:14means my higher time frame is the
16:154-hour, my medium time frame is the
16:1815-minute, and my lower time frame could
16:20be the 5-minute time frame itself.
16:22Okay, so let's look at this chart over
16:23here.
16:24So, first things first,
16:26always
16:28start from your higher time frame.
16:29All right, that's the first thing.
16:31You don't want to take a bottom-to-up
16:33approach. You want to take a
16:34top-to-bottom approach. What I basically
16:37mean by that is that a lot of times
16:39beginners tend to start with the lower
16:41time frame, right? So, beginners, they
16:43immediately like to jump to the 5-minute
16:45time frame, see what price is doing over
16:46here. If price is going down, they just
16:47enter for a sell here.
16:49Or they go down to the 1-minute time
16:50frame, see price is going up, they just
16:51enter for a buy somewhere around here.
16:53That's not how you should be trading.
16:56Because if you start from the lower time
16:57frame, you're essentially building a
16:59bias from noise.
17:01All of these price action has very
17:03little significance over like where
17:04price is potentially heading towards
17:06next.
17:07Right? So, what you want to do is
17:10to start from the higher time frame.
17:12Okay, so once again, let me just put it
17:14into simple English. If you trade
17:17and you start on the lower time frame,
17:19the 5-minute, the 1-minute, or even the
17:2015-minute time frame
17:22what you're essentially doing is that
17:24you're putting blinders on yourself. You
17:27know those horses with like the blinders
17:28on themselves which prevents them from
17:30seeing their surroundings? That's what
17:32you're essentially doing.
17:33You will only be able to see what price
17:35is doing on the 5-minute, and you will
17:37not be able to see what price is doing
17:38on a higher time frame, which is
17:40actually the price action that determine
17:43where price is heading towards next.
17:45So, even though price is going down on
17:47the 5-minute time frame, you enter for a
17:49sell, next thing you know, price start
17:51reversing heavily against you because
17:53the 1-hour time frame, the 4-hour time
17:55frame is heavily bullish right now.
17:58All right, so always start
18:00top-down, not bottom-up.
18:02Start with the higher time frame, right?
18:04The first set of time frame, which is
18:05the 4-hour, and this is where you want
18:07to build your narrative and determine
18:09your trend direction.
18:12So, clear as day, price has been going
18:14up, right? Price is creating higher
18:15highs, higher lows, higher highs, higher
18:16lows. This is where I want to take my um
18:19line tool and just map out all the
18:21structural breaks that has been going on
18:24for the past few days, right? So,
18:26there's one right here.
18:30Okay, so and then there's maybe another
18:31one right here.
18:35And then there's another one right here.
18:39Okay, so just by doing this alone, I can
18:41see that okay, all of these are actually
18:43my bullish break of structure, where
18:45price is just going up, creating higher
18:47highs
18:48higher lows, higher highs, and higher
18:51lows.
18:52And just by doing this alone, I know
18:54that the market is in an uptrend, which
18:55means that buyers are in control of
18:57price. Okay? Buyers are in control of
19:00price. So, as much as possible, if I
19:02want to trade with the trend direction,
19:03the higher time frame trend direction
19:05this is where I will potentially want to
19:07look for longs at demand zones that is
19:09within your discount range.
19:11Just like what we have covered for the
19:12past few lessons. So, after you
19:14determine your
19:16swing structure, this is where you can
19:18define your swing low and a swing high,
19:20right? This will be the swing low, but
19:21you can see the swing low has been taken
19:22out recently since this is the lowest
19:24point to the left to the most recent
19:26break of structure, therefore creating a
19:28market shift.
19:30All right, so what does this tell us?
19:32This tell us that right now price have
19:34potentially shifted bearish
19:36so that it can
19:39pull back to this last low right here
19:42before continuing bullish. At least
19:44that's our expectation on what price
19:45could potentially do.
19:47Okay, for me to know for a fact that
19:49price is going to shift bearish I want
19:51to see price take out this low here.
19:53Okay, so over here if price just take
19:55out this last
19:57last low right here last internal low.
19:59This is just price shifting bearish in
20:01the short term to facilitate the
20:03pullback.
20:04So right now, even though higher time
20:06frame trend is bullish right here, what
20:07is price doing right now?
20:09Okay, so that's another thing. That's
20:12what we use the medium time frame for.
20:14What is price doing right now? We need
20:16to determine our immediate bias so that
20:18we can trade with the internal order
20:20flow so that we can trade with the
20:21immediate price action which is
20:23what price is doing right now.
20:25So over here, another thing that you
20:27could have done on the higher time frame
20:28is to like once again just map out the
20:31previous low right here.
20:34Swing low and then this your swing high.
20:37If you want to be like super duper
20:39mechanical, you might even want to map
20:40this out as your internal break of
20:42structure instead of
20:45your bullish break of structure. Right?
20:46So if that's the case then this is the
20:47swing low and this is the swing high.
20:49And right now like I said, price has
20:50shifted bearish to facilitate the
20:52pullback itself.
20:54And then this is where you might even go
20:55one step further to map out your premium
20:57and discount.
20:58And then you will realize that price is
21:00still quite high up within the premium
21:02pricing. So if I want to look for longs,
21:04I do really want to see price comes down
21:06into this
21:07discount range right here. And ideally I
21:10want to see it mitigate some form of
21:11demand zone. Right? So once again,
21:14there's a demand zone right here and
21:15then there's potentially another demand
21:16zone over here.
21:20Okay, so maybe if I'm looking for longs,
21:22I want to see price comes down mitigate
21:24this zone or this zone and then I can
21:26look for longs to trade in this
21:27particular direction itself.
21:29So that's what you essentially do on the
21:31higher time frame. You just build the
21:32narrative. You just try to figure out
21:35what is the market show tell trying to
21:37tell you right now and what is like who
21:40is in control of price, right? Whether
21:42the buyers or the sellers.
21:43Once all of this is done then this is
21:45where I can jump down to the medium time
21:46frame.
21:47So for me personally when I'm trading, I
21:50like to use the 1-hour time frame
21:54and the medium 15-minute time frame as
21:56my medium time frame. Right? So I like
21:58to use both.
21:59Even though here only recommend you to
22:01use one,
22:02I personally like to use both. Right?
22:04Because to jump from 4-hour to 15-minute
22:06it's like a very big gap. So I prefer to
22:09use 1-hour as like the middle man
22:11between like 4-hour and 15-minute. But
22:13once again, completely up to you. I just
22:14wanted to show you three time frames for
22:17simplicity's sake. Right? Because I know
22:18a lot of you guys are not ready to have
22:20four different time frames.
22:22You guys are not even ready to have
22:23three time frames.
22:25Having four is like it's just going to
22:26drive you mad, isn't it? So yeah, I
22:28would say like stick to whatever works
22:31best for you, but this is based on how I
22:34personally trade. I like to have the
22:361-hour as like a like a sweet spot like
22:38like a like the the the the best
22:40medium time frame between
22:42the 4-hour and the lower time frame
22:44which is the 5-minute time frame.
22:46So on the 1-hour time frame itself, you
22:48can see price have started shifting
22:49bearish. Okay, cool. Let's go down to
22:51the 15-minute time frame which is our
22:52officially medium time frame and this is
22:55where you can see 15-minute time frame
22:57has already shifted bearish. How do we
22:59know price shifted bearish? Price came
23:01all the way down here taking out the
23:02last higher low giving us a market
23:04shift.
23:06Okay, so just by that alone, we know
23:08that okay, right now the internal
23:11structure is actually bearish. So if we
23:13enter for a buy somewhere around here,
23:15it's kind of trading against the lower
23:17time frame trend. It's also trading
23:19against the internal order flow.
23:23Right? So maybe it's not the best time
23:26to look for shorts.
23:28I mean maybe it's not the best time to
23:29look for longs.
23:31Maybe it's a good time to look for
23:32shorts. At least short it all the way
23:35till price comes down to the discount
23:37range or comes down to this demand zone
23:39or this demand zone right here.
23:41So this is how we can go about if you
23:42want to trade counter trend.
23:44Right? The reason why I say it's counter
23:45trend is because right now lower time
23:47frame is bearish, but the higher time
23:49frame is bullish.
23:50So if you were to look for short, you
23:52are actually trading with the internal
23:54structure, but you're trading against
23:57the higher time frame swing structure
23:58itself.
24:01Right? So let's continue mapping it this
24:03up. Right? So on the 15-minute time
24:04frame on my medium time frame, what is
24:06my objective? My objective is to
24:08determine the immediate bias and map out
24:10any point of interest.
24:12Right? So in this case, the immediate
24:13bias is that price is actually bearish.
24:15And then this is where maybe I want to
24:17draw my 15-minute
24:19structure as high.
24:20Uh structure as well, 15-minute swing
24:22high and then 15-minute swing low right
24:25here.
24:26And then this is where I can potentially
24:29wait for price to pull back to some form
24:31of supply zone then look for shorts.
24:33Right? So this is where I can come here
24:34try to identify every supply zone over
24:36here. There's one over here on the
24:39extreme
24:41right there.
24:42And then there's maybe another one right
24:43here.
24:44Okay, another one right here. And then
24:46this is where once again, you can use
24:48the premium and discount as well. Right?
24:51Drag it from the swing high to the swing
24:52low, you will see that over here
24:55price is still within the discount zone.
24:58So if you want to look for short, it's
25:00might be a little bit too early. Right?
25:02You might be much better off waiting for
25:03price comes down up to this supply that
25:05is within the premium pricing or even
25:07this one right here.
25:09Get your entry confirmation, get your
25:11entry trigger, then look to short it all
25:12the way down here.
25:14Now you can start to see the different
25:16pieces of the puzzle start coming
25:17together.
25:18Now you can start to see it, okay, I
25:20need to use supply zone plus premium and
25:22discount plus structure plus multi-time
25:24frame analysis for me to actually
25:25develop a trade idea
25:27that is congruent with the market.
25:31Now I can start to use all of these
25:32market mechanics concepts to try to
25:36decrypt what the market is trying to
25:38tell me.
25:39Yeah, so I'll say like
25:41in this case, I want once again, I'm not
25:43going to dive too deep into entries and
25:45exits because this is
25:47a lesson where we talk about multi-time
25:48frame analysis. Right? But I wanted to
25:50observe what price does. Okay? So this
25:52is where price is at right now. Let's
25:53observe.
25:54Okay, price is actually bullish right
25:56now. Okay, are we surprised that price
25:58is bullish? No. Why? Because
26:00just like what we have mentioned, the
26:02market cannot go down forever. It cannot
26:04go up forever. After a huge move to the
26:06downside, it needs to seek balance
26:08again. It needs to get more fuel. And
26:10where is it most likely going to get
26:12fuel from? It's going to get fuel at
26:14some supply zone.
26:15But is it any supply zone? No. It's
26:17usually going to be at a supply zone
26:19that is located
26:21within the premium range above the 50%
26:24equilibrium level within the swing range
26:27itself. Right? Because this is where the
26:29fair value is is situated at. This is
26:31where there's more sell orders for price
26:33to continue going down even further.
26:34Okay, so just as what we predicted,
26:37right? Price has came all the way up
26:38here.
26:39Now if you are a scalper, this is where
26:42you can potentially even look to trade
26:43this move right here. Or even if you're
26:45an intraday trader, right? You can try
26:47to capture this move
26:48to this area here. And I'm going to show
26:50you how to do that right after this
26:53example. I'm going to show you a trade
26:55I've taken which is me literally
26:57capturing this move right here.
26:59Okay, and I'm going to walk you through
27:01like my thought process behind this
27:02entire trade and how I apply multi-time
27:04frame analysis on it.
27:06But before we do, let's not get too
27:07ahead of ourselves. Let's just continue
27:09to observe what price does. Right?
27:10Because this is where I wanted to really
27:13see how powerful this multi-time frame
27:15analysis thing is.
27:17Okay, so over here,
27:19what happened?
27:20What happened is that price has
27:22literally came up here mitigate the
27:24supply zone that is within the premium
27:25pricing.
27:27So you can see price did not start
27:29coming down when price came up here.
27:32No, there was not enough fuel. So it
27:34needed to continue going up till it
27:36comes to the gas station, grab more fuel
27:38then go down.
27:41Like I said, nothing ever happens
27:44nothing at that that happens in the
27:45market is mere coincidence. Right? Every
27:48single move is planned out. Every single
27:50move has a purpose.
27:52So in this case, the purpose was that
27:55price just needs to go up there grab
27:56more liquidity before the real move
27:57actually happens.
27:59Now I want you to observe what price
28:00did.
28:01When price mitigate this supply zone to
28:03grab more liquidity,
28:05look at the internal structure that we
28:07have right here that is being formed.
28:08Price goes up, pulls back, goes up,
28:10pulls back, goes up, pulls back. So we
28:12know that price has shifted bullish
28:14because price is creating higher highs
28:15and higher lows on the 15-minute time
28:17frame. But does this mean that price has
28:20shifted bullish because [snorts] the
28:21trend is reversing? No.
28:24If price take out this higher, then
28:26yeah, maybe price is reversing.
28:28But if it doesn't take out that high,
28:30this just tells us that price have
28:31shifted bullish in the short term to
28:33facilitate the pullback.
28:36Okay, facilitate the pullback to this
28:37supply zone. And when it does that,
28:40this is where price consolidated a
28:42little bit. Later on price came down
28:43take out the last internal low giving us
28:46a market shift which tells us that the
28:48internal structure has shifted from
28:50bullish to bearish.
28:52So if you were to look for shorts, the
28:54best place to look for shorts is at this
28:56supply zone that is within the premium
28:58pricing. Once you get your entry
28:59confirmation that the area that the
29:01structure is shifting bearish, by all
29:03means go and look for short and this is
29:05where you can trade it all the way down
29:07here or even to here if there is enough
29:10fuel in the market.
29:14And if you look at this,
29:16does this look familiar to you? Right?
29:18Like does this look familiar to you?
29:20Okay, so just to make it even more
29:22obvious, this is the last break of
29:23structure right here.
29:25And then later on price came down take
29:26out the last internal higher low giving
29:28us a market shift.
29:31Right?
29:32I want you to take a snapshot of this
29:34price action here.
29:35This portion here. Right? Remember this.
29:39Now this is what price is doing on the
29:4115-minute time frame. Let's go back to
29:43the 4-hour time frame.
29:46Do you see it now?
29:47It's literally the the exact same price
29:50action just on a different scale, just
29:52on a different price just on a different
29:54time frame. That's what I mean when I
29:56say the market is fractal. Right? You
29:58will see the same patterns across
29:59different time frames. Just now on the
30:0115-minute time frame, we saw price goes
30:03up, pulls back, goes up, pulls back, and
30:05then goes up, and then comes down,
30:07breaks structure causing the internal
30:08structure to shift
30:09bearish.
30:11Guess what? On the 4-hour time frame, we
30:12have seen the exact same thing. After
30:15price action turned bearish after the
30:16market shift is formed, price is pulling
30:18back, and then now it's going to start
30:19going down.
30:20Let's go back to the 15-minute.
30:22After the market shift is formed, price
30:24has came down, and now it's starting to
30:26pull back, and now it's going to go
30:27down.
30:28Same exact price action.
30:31That's how you apply multi-time frame
30:33analysis. Okay? So, now let's just
30:36continue to observe what price does.
30:39Okay? So, price continue going down,
30:41continue consolidating around here, la
30:43la la, right? Creating a lower high, and
30:45then comes down. Okay, cool.
30:47Now, let's talk about the lower time
30:48frame since we haven't talked about the
30:49lower time frame yet. So, you only enter
30:52into the lower time frame, which in this
30:54case
30:56is the 5-minute time frame for a day
30:57trader,
30:59you only go down to the lower time frame
31:01once price have touched your medium time
31:04frame point of interest.
31:07This prevents you from trading when
31:09price is in the middle of nowhere.
31:12So, in this case itself,
31:16let's say price was over here.
31:17Okay? Price is over here.
31:20And we have mapped out our 15-minute
31:22supply zone,
31:23this one right here and this one right
31:24here. So, these are the two locations in
31:26which we want to enter the trade from.
31:29This means that when price is hovering
31:32around here in the middle of nowhere, we
31:34do not go down to the lower time frame.
31:37I'm not going to jump down to the
31:385-minute, I'm not going to jump down to
31:39the 1-minute time frame, I'm doing
31:41nothing until price touches either one
31:43of these zone here. So, I'm still over
31:45here waiting very patiently, or maybe I
31:47would like to set an alert right here at
31:48the edge of the zone, and then I just
31:50wait. Boom, the minute price touches
31:52that zone, you jump down to the lower
31:55time frame to look for your entries.
31:58So, this is where you jump down to the
32:005-minute time frame, your lower time
32:01frame to look for your entry
32:02confirmation. You look for entry
32:04triggers, look for entry confluences.
32:07And then once you got your entry
32:08confluences in this time frame itself,
32:11then you can look for shorts.
32:13Right? So, we're going to delve deeper
32:15into entry confluences, entry models in
32:17the next few lessons, right? But for
32:20now, just to give you like a quick
32:21little example, right? So, in this case,
32:25look at the internal structure. Price
32:26came up here, came down,
32:28and then took out this high here as
32:30well, right? Took out this high here.
32:33But this turns out to be a liquidity
32:35sweep. After the liquidity sweep, price
32:37came down and took out this last low
32:40over here, giving us a market shift.
32:43Right? So, this is going to be one of
32:44the entry models that you're going to be
32:46learning very soon, but once you see
32:48this pattern itself,
32:51and it happened right after price
32:53mitigate the zone, this is where you can
32:54look for shorts. Right? This is where
32:56you can look for short, and then this is
32:58where you can look to short it all the
33:00way down.
33:01Right? So, once again, we're going to
33:03delve deeper into entries and exits in
33:05the next few lessons. For now, just get
33:07really good at using these different
33:09time frame.
33:10Okay? So, in this case itself, I'm not
33:13sure why TradingView is taking so long
33:15to load these days. It's really testing
33:17my patience.
33:19Okay, let let's just wait a little bit,
33:20man.
33:22Yeah, so anyways, in this case itself,
33:26what happened was that the lower time
33:28frame, the 5-minute time frame started
33:30shifting bearish first
33:32before the higher time frame, the
33:3415-minute actually shifted bearish.
33:36Okay? You guys saw this was the lower
33:38time frame structure, right? The
33:395-minute structure started turning
33:41bearish first, then the 15-minute time
33:43frame started turning bearish.
33:45So, like I said, whatever happens on the
33:47higher time frame, it must first happen
33:49on the lower time frame.
33:53So, in this case, let's continue to
33:55observe, right? What price does.
34:00Okay? So, we got a market shift over
34:01here, price started shifting bearish, la
34:03la la. Okay, cool. And then we got a
34:05break of structure to the downside right
34:07here, and then now price is creating
34:09lower highs, lower lows, lower highs,
34:10lower lows,
34:11lower highs, lower lows, and then lower
34:14highs again. And once again, this is the
34:17beauty of market structure, right? So,
34:19this is the supply zone that led to this
34:20break of structure,
34:22and look at where price pulled back to.
34:24Pulled back, mitigated the supply zone.
34:26Or if you want to make it even more
34:27refined,
34:29guess what? What is this? This is your
34:31good old fair value gap, right? Fair
34:33value gap, imbalance,
34:36right? Another imbalance right here,
34:37which means that there's an order block
34:38over here.
34:40Okay? So, this is actually a good old
34:41juicy order block.
34:45So,
34:46once again, using the concept that we
34:48just
34:49that I just walked you through,
34:50this is a 15-minute order block, right?
34:53So, on the medium time frame, we have
34:55determined our intermediate bias, which
34:56is bearish right now, and we have mapped
34:58out our point of interest, which is the
35:0015-minute order block that we have right
35:01here. So, in this case,
35:05right here, let's say price is somewhere
35:07around here.
35:08I'm not doing anything.
35:10I'm not jumping down to the lower time
35:11frame. I'm not going to be getting itchy
35:14fingers to try to enter for a sell right
35:15here.
35:16No. I won't wait for price to come to
35:19me. I never ever chase price. I wait for
35:20price to come to me.
35:22Okay? So, in this case, I'm waiting, I'm
35:23waiting. Okay? Price comes up to this
35:25fair value gap. Now I'm interested,
35:27right? If I can see a reaction, if I can
35:29see the confirmation that price is going
35:31bearish right here, then I can look for
35:33shorts.
35:34Right?
35:35Uh okay, so if you're a scalper, you
35:37could potentially have caught this move
35:38right here, this tiny move right here
35:40after the the fair value gap itself. But
35:42let's say you missed this move here.
35:44Then next, cool.
35:45You do nothing, right? You are very
35:47patient. You tell yourself that you
35:48don't chase trade. Okay, the move has
35:50already happened without me. Now I'm
35:52chill. I'm waiting for price to come to
35:53my next point of interest, which is the
35:55order block. Okay? So, the minute price
35:57step into the order block just like
35:59this,
36:00boom, straight away, go and look for
36:02entry confirmation on the 5-minute time
36:04frame itself, right? The lower time
36:06frame. And if you see your entry
36:07confirmation, by all means, take a good
36:09old short position right here, and then
36:13watch price collapse.
36:15Right? You can see
36:17the entry is the last thing you do.
36:20The money is not made in clicking the
36:22buy and sell button.
36:23The money is made in the preparation
36:25that comes before that.
36:27The money is made in the entire top-down
36:29analysis, the multi-time frame analysis.
36:31The trade ideal, the entry is only just
36:35one little piece of the entire puzzle
36:38itself.
36:39So, when you see me capturing, you know,
36:41high R trades, when you see me making
36:42six figures on a given trade, understand
36:45that it was not because I identified a
36:48bearish candlestick at this zone that I
36:50enter for a sell. No, it's because of
36:52what came before that. How I developed
36:54my trade bias using the multi-time frame
36:55analysis.
36:57So, the entire process contributed to me
37:01catching this trade itself.
37:04Okay?
37:04So, that's multi-time frame analysis,
37:08right? I've pretty much walked you guys
37:10through how to use these three set of
37:12time frames as a day trader. Now, maybe
37:14let's try to look at another example on
37:17a live trade I've taken, but this time
37:19around, let's look at it from the eyes
37:21of a scalper.
37:23So, if I'm a scalper today, I'm going to
37:25be using the 1-hour time frame as the
37:28higher time frame, the 5-minute as my
37:30medium time frame, and the 1-minute as
37:32my lower time frame itself. And that's
37:34what we are doing in this case itself.
37:37Okay? So, right here, I'm on the 1-hour
37:39time frame here.
37:42So,
37:43maybe let me just see. Yeah, let's just
37:46go back to where price was like
37:47somewhere around here. Let's go back to
37:49my entry.
37:50And I can walk you through everything.
37:52So, let's say right now, 1-hour time
37:54frame, I'm a scalper today. I'm getting
37:56in and out fast, which means I don't
37:57really need to care about what price is
37:59doing on a daily time frame or the
38:00weekly time frame, because I'm literally
38:03developing my trade ideal within the
38:04next few minutes and just getting out
38:06within the next few hours, right? So,
38:08the daily time frame, the weekly time
38:09frame doesn't really concern me as much
38:12as it concerns a swing trader or a day
38:14trader.
38:15It still affect you, right? Don't get me
38:17wrong, right? Like like I said, the
38:18higher time frame trade ideal is always
38:20going to be much more stronger than what
38:22price is doing on the lower time frame.
38:23So, if you want, you can still take a
38:25look at it, right? But just don't put
38:27too much significance over the daily
38:30time frame itself.
38:31Because you as a scalper, your higher
38:33time frame will be the 1-hour time frame
38:35itself.
38:37So, 1-hour time frame is my higher time
38:38frame, and I'm developing my trade bias
38:41by identifying the trend direction and
38:43mapping out structure. Right? So, you
38:45can see price has created a
38:47bullish break of structure, bullish
38:49break of structure right here, but the
38:51thing is that the market has shifted
38:52bearish when price took out this low
38:54over here.
38:56So, this is where I had my good old
38:59market shift over here.
39:05And then now, this is where I can find
39:08that this is my 1-hour swing high, and
39:11this is my 1-hour swing low. This is the
39:13range that we are trading within right
39:14now.
39:15And after this huge imbalance to the
39:16downside, I'm expecting the market to
39:18come up to a balance again. I'm
39:20expecting price to start shifting
39:22bullish in the short term, right? To
39:23fill up all of this imbalance on the
39:24left-hand side right here. So, this is
39:26where I can take my premium and discount
39:28tool, drag it from the swing high to the
39:29swing low just like this, and this is
39:32where I'm plotting out the supply zones,
39:34the order block in which I can expect
39:35price to gravitate towards next.
39:38That's me plotting out the gas station
39:40that price is moving towards next to
39:42grab more fuel before going down even
39:44further. So, in this case
39:47obviously
39:48find the imbalance, right? Find a strong
39:50displacement, huge displacement right
39:52here, here, here. And then this right
39:54here is the origin point, so this
39:55becomes the order block.
39:57Okay?
39:58So, this one is very obvious, right?
39:59Because we got a huge strong bearish
40:01candlestick right here. And the origin
40:03point is this
40:05candlestick right here, this origin
40:06candle here. So, that's the order block
40:08and then you can also map out the other
40:09supply zone if you want up here.
40:12Right? So, this tell me that the first
40:14place that price is moving towards next
40:16is going to be this order block.
40:19So, in this case that was my analysis on
40:22the 1-hour time frame. I've identified
40:23the trend direction, which is bearish.
40:26But on the lower time frame itself, it
40:28could potentially shift bullish in the
40:29short term to facilitate the pullback.
40:31Right? So, even though the high the the
40:33higher time frame is telling me that
40:34price is bearish if I jump down to the
40:36lower time frame and the medium time
40:38frame to determine my to develop my
40:40immediate bias, I will actually be
40:42looking for longs, right? Because I want
40:44to trade this pullback all the way up to
40:46this supply zone right here, right? Or
40:48even this order block here.
40:49So, this is where I jump down to the
40:5115-minute time frame.
40:53And same thing, right? You can map out
40:54your 15-minute high and 15-minute low
40:58right here. This is a 15-minute swing
40:59range in which we are focusing on. And
41:01you can also map out any other
41:03supply zones
41:05or order blocks that you have missed on
41:06the higher time frame itself.
41:08Right? So, in this case this was the uh
41:101-hour order block that we have mapped
41:11out. And then I also map out this other
41:1315-minute supply zone right here.
41:16Okay? The reason why I mapped that out
41:17is because price came down, pullback,
41:19and then goes up. And it is also order
41:20block. It's not just a supply zone.
41:22Because if you look at the next
41:23candlestick, there was imbalance. Right?
41:25So, this is the order block.
41:27So, you can see if you didn't do this on
41:28a medium time frame, you would have
41:30missed this point of interest itself.
41:32You have missed this step. Okay?
41:34Anyways, in this case we got the 1-hour
41:36order block that is situated quite high
41:38up there. And then there's this
41:3915-minute order block here.
41:42All right? So, this is where price is
41:44moving towards next.
41:47Because the market is moving from
41:48imbalance to balance to imbalance again.
41:51All right? So, that's the gas station,
41:52yeah?
41:53Okay, so that is my target. But where do
41:57I want to enter the trade from?
41:59Well
42:00since I'm trading the pullback, I duty
42:02on the look for longs. But where do I
42:04want to look for longs? I don't want to
42:05look for longs when price is at a high.
42:07I want to look for longs when price have
42:08just created a new higher low. And right
42:10now price is going to go up just like
42:12this.
42:13So, in this case I map out my 15-minute
42:15structure and I found out that price is
42:17creating higher highs, higher lows just
42:19like this.
42:21And you can see every time price
42:23came up there, create a high, swap some
42:24liquidity, and then go up there, break
42:25structure.
42:27Same thing right here.
42:29Okay? So, in this case this is the
42:30demand zone that led to the previous
42:32break of structure. I saw price
42:33mitigated that zone and this is where
42:35price started shifting bullish. And I
42:37know for a fact that price is just going
42:38to continue bullish until it reaches
42:40this area here.
42:41All right? So, this is where I map out
42:43my lower time frame demand zone. And the
42:45minute price step into this area here,
42:48then this is where I jump down to my
42:495-minute time frame and I look for my
42:51entry. Okay? Jump down to my lower time
42:53frame to look for my entry itself.
42:57So, I personally like to use the
42:5915-minute
43:02as the medium time frame.
43:03And then the 5-minute and 1-minute as
43:05the lower time frame.
43:07So, I will actually use both the
43:085-minute and 1-minute as the lower time
43:10frame.
43:105-minute to just, you know, get my
43:12entry. 1-minute sometimes to just refine
43:14my entry even further, right? Just to
43:16get like even more of a sniper entry.
43:19So, in this case
43:21what do we have? We got price mitigating
43:23this zone right here, creating a new
43:24higher low, and then right now price is
43:26giving us clear as day bullish
43:27confirmation that tells us that price is
43:29going to head up this way here.
43:31So, this is where look for longs here.
43:33Okay? After I look for longs, price
43:35started coming up here. And then
43:38this is where I believe I placed my stop
43:39loss like below this low initially. I
43:41forgot where exactly I placed my stop
43:43loss, but I think it was like somewhere
43:44below this low. And then eventually I
43:45moved it up to a below this low because
43:47I actually scaled in for this second
43:49position. Once again, you guys can see
43:51my entire like top-down approach from
43:54the moment I entered a trade to the
43:55moment I get out of the this trade on my
43:57second channel Bread Trades, I literally
43:59we documented every single pip move on
44:01there, right? You can see me enter this
44:02trade live on there itself. But yeah,
44:05I'm just giving you like a quick little
44:06trade recap. So, what happens is that
44:08after we got a bullish confirmation
44:10turn, enter for the long for the first
44:11position right here. And then later on
44:13price pullback to this area here, giving
44:15me more confirmation. So, this is where
44:17I decided to scale in for my second
44:19position.
44:20And then later on uh like I said, I'm
44:23pretty much expecting price to move up
44:24to this next 15-minute order block. So,
44:26that's why I targeted the area. And then
44:28my stop loss was below this new low
44:30right here that is has been formed here.
44:33You can see from price pullback
44:35it was this low here. So, my stop loss
44:37was situated at below this low here of
44:39my second position, right? The internal
44:42low that I've entered at. And then later
44:44on price just went up very, very nice.
44:46Came in the drawdown a little bit, not
44:47going to lie, right? But eventually
44:48price went up there slowly but surely
44:51and just hit TP. Right? But look at what
44:53price is doing. Price is just creating
44:55those higher highs and higher lows. So,
44:57this is where when price was like
44:58reversing around here, I wasn't scared
45:01whatsoever. And the reason why I wasn't
45:03scared is because
45:04I trust structure, right? So, in this
45:06case this is the last higher low. So, if
45:08that low doesn't get taken out, then the
45:09bullish market structure is still intact
45:11and my trade idea is still correct. It
45:13is still valid. So, I will not get
45:15phased even though I'm down like 50k at
45:17the moment, I will just continue holding
45:19on to the trade idea.
45:20Because I understand market mechanics.
45:23Later on price went up there, smashed my
45:24TP, and I made a ton of money on
45:26that day itself.
45:27And this was a trade that I was very
45:28proud of because of the fact that I
45:30literally caught out
45:33the fact that I was going to get a
45:35sniper like trade and I did just that,
45:38right? Like if you guys go and watch
45:39that live trading recording, you will
45:41see that when I enter into this position
45:43here, I told you guys that I was going
45:46to get a sniper entry. And then right
45:48after I enter for the trade, price moved
45:50up immediately and then eventually went
45:52up there with not much drawdown itself,
45:54right? So, I told you guys I was I was
45:55going to do something and I ended up
45:57doing it live.
45:59So, yeah.
46:00That's it. Right? So, basically just to
46:03sum up everything that we have covered
46:05in here
46:08understand that time frames they don't
46:10always conflict with each other.
46:13They are just showing different layers
46:15of the same market.
46:17Because whatever happens on a higher
46:19time frame must first happen on the
46:20lower time frame.
46:21And you tend to see the same patterns
46:22across the different time frames.
46:26So, in this case daily time frame can be
46:28bullish.
46:30Right? Daily time frame can be bullish.
46:32In fact, it was bullish itself.
46:34But right now the 15-minute time frame
46:38could be bearish. And then the 1-minute
46:39time frame can be bullish.
46:41Each one of these time frame has a
46:43specific purpose as well. They are all
46:45serving a different role.
46:48Okay? They are all serving the higher
46:50time frame, which is king, right? The
46:51higher time frame is still king.
46:53So, they are all just like different
46:55little ants in a colony, just, you know,
46:57playing their part so that they can
46:59serve the entire kingdom or the colony.
47:01So, multi-time frame analysis is really
47:04just about using each time frame for a
47:06specific purpose.
47:08Once again, using the higher time frame
47:09to do this.
47:11Using the medium time frame to do this.
47:12Using the lower time frame to do this.
47:16Higher time frame give you the big
47:17picture. Medium time frame tells you
47:19where to enter, right? Develop your
47:20immediate trade idea, your immediate
47:22bias, and the point of interest. Lower
47:24time frames tells you when to enter.
47:28Okay? So, I will say the higher time
47:30frame tell you
47:32what who is in control of price. Medium
47:34time frame tells you where to enter the
47:36trade. Lower time frame tells you when
47:39to enter for the trade itself.
47:42And when you learn to read them
47:43together, you stop getting lost in the
47:45noise and complexity of the market, and
47:47you start trading with much more
47:49clarity.
47:52So, yeah. I know this lesson was a
47:54little bit long, right? But because this
47:55is such a big, chunky
47:58topic that I have to spend more time
48:00covering. And I really hope that I've
48:02made things a lot more clearer for you
48:03guys. Don't worry if you're still
48:05confused. As time passes, you will just
48:07get better at doing this. I will say
48:10when in doubt, just zoom out, right? So,
48:12whenever you find yourself not knowing
48:14what's the trend direction on the lower
48:15time frame
48:16always zoom back out to your higher time
48:18frame. Go back to the daily time frame.
48:20Go back to the 4-hour if you're day
48:21trading. Go back to the 1-hour if you're
48:23scalping.
48:25And then do your analysis from top-down.
48:28And when you do, you have a much more
48:30better understanding of what the market
48:32is actually doing.
48:34All right? So, with that said, I hope
48:35you guys have enjoyed this little
48:36episode for multi-time frame analysis.
48:39In the next few episodes, we're going to
48:40talk more about market mechanics
48:41concepts. And this is where
48:44you should start to build like a little
48:45foundation when it comes to market
48:47mechanics. Over the next few lessons,
48:49we're just strengthen that foundation
48:51and just make it even more robust,
48:54right? So, you can have a much better
48:56idea on how the market fundamentally
48:58move.
48:59So, with that being said
49:01I hope to see you guys on the next
49:02episode. And as always, remember you're
49:04just one trade away.

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