Multi Timeframe Analysis

Multi-time frame analysis in trading involves looking at the same asset at different time frames to gain a more comprehensive understanding of market conditions. The idea behind this approach is that by looking at the asset from multiple perspectives, traders can better identify trends and make informed trading decisions.

Here's how it works:

1. Choose multiple time frames: Traders typically use at least two or three different time frames, such as a daily chart, a 4-hour chart, and a 1-hour chart. For our example, we will use the Daily and 1 hour timeframe
2. Analyze each time frame: Traders will analyze each time frame to identify the trend, support and resistance levels, and other key technical indicators. Look for consistency: By comparing the trends and technical indicators across the different time frames, traders can get a better sense of market conditions and look for consistency. For our example, we see a buy on the Daily chart and it is also above the cloud, so that will set our bias, now what we do is look for buys on the hourly chart. The arrow denotes the exact candle on the daily where the buy signal was formed, which also shows it on the hourly.
3. Make a trading decision: Based on their multi-time frame analysis, traders can make a more informed decision about whether to enter or exit a trade. If the trends and technical indicators are consistent across the different time frames, this can provide greater confidence in the trade decision. On our example, we will only take the buy signals that is generated on the hourly which are also above the cloud, following our simple strategy, with respect to our buy bias on the daily. 

Multi-time frame analysis can help traders to see the big picture and identify long-term trends, while also providing a better understanding of short-term price movements. However, it's important to use multi-time frame analysis as part of a well-defined trading plan and to use proper risk management techniques.