Multi-Time Frame Analysis
Updated: Sep 22
Multi-Time Frame Analysis (MTFA) is the study of multiple charts at once. This includes but is not limited to the monthly, weekly, daily, and 65min charts (these are what I use for swing trading). What is the purpose of MTFA? If we can play the trend on all timeframes, that means we are also playing in the direction of a majority of institutions, long-term investors, short-term, and everyone in between.
Where do we start? The larger time frames help us set the bigger picture so we will start there. We want to make sure we are in the same direction as our institutions and long-term investors.
In early 2020, Moderna printed a bull trend shown by the blue ribbon displaying the 8 and 21 EMAs. As we look at the chart, we can see how well price reacted off its 8EMA. Now when we zoom in to smaller timeframes, we will want to look for bullish setups.
As we zoom in to the weekly chart, we can see how well price once again reacts its bullish trend. These are the types of trends that can make a traders career. We knew the monthly was bullish and now we know the weekly never strayed bearish either.
This process is repeated down to the timeframe you use. I typically stick to the daily to set up trades however in certain market conditions will wander down to the 65min.
Bullish Monthly? Bullish Weekly? Bullish Daily? If you answer yes to all these during your analysis, you know you have found a strong uptrend and you will want to find opportunities to go long with high risk/reward setups within the trend.