Section 3 · Chart Reading
Multi-Timeframe Analysis
The daily chart gives you bias — the 5-minute gives you entry
Always Know the Bigger Picture
Multi-timeframe analysis (MTFA) is the practice of analyzing price action across multiple time horizons before placing a trade. The principle is simple: higher timeframes determine the direction of the dominant trend, and lower timeframes provide precise entry and exit timing. A momentum trader typically uses three timeframes: the daily chart for overall market bias and pattern identification, the 15-minute or hourly chart for intermediate-level structure and confirmation, and the 5-minute or 1-minute chart for precise entry timing. The golden rule: never trade against the daily chart. If the daily trend is down but you see a bullish setup on the 5-minute, you're fighting the primary trend — a low-probability trade. Conversely, when all three timeframes align (daily uptrend + 15-min consolidation + 5-min breakout), the probability skyrockets. This alignment is called "timeframe confluence."
3 things to know
Daily chart: determines the primary trend bias — never trade against it
5-minute chart: used for precise entry timing within the daily trend direction
Timeframe confluence — when all timeframes agree — produces the highest-probability trades
Dive Deeper
Daily Chart — The Boss
Sets the primary trend direction and identifies major patterns. Never take a trade that goes against what the daily chart is telling you. This is your foundation.
15-Min Chart — The Context
Shows intermediate structure — consolidation zones, support/resistance levels, and whether today's price action is consistent with the daily trend.
5-Min Chart — The Trigger
Used for precise entry timing. Look for a pattern or breakout on the 5-minute that aligns with the direction of both the daily and 15-minute charts.
Key vocabulary — tap each card
Practice
Top-Down Analysis Process
Start with the Daily Chart
Determine the primary trend. Is the stock in an uptrend, downtrend, or sideways? Identify key support, resistance, and any major chart patterns forming.
Check the 15-Minute Chart
Verify that today's price action is consistent with the daily trend. Look for intermediate consolidation or a setup forming within the larger trend context.
Find Entry on the 5-Minute
Only now look for a specific entry trigger — a breakout, a pullback to a moving average, or a pattern completion that aligns with the two higher timeframes.
Confirm Alignment Before Entry
Ask: does this 5-minute setup go WITH the 15-minute trend, which goes WITH the daily trend? If yes — execute. If any timeframe disagrees — pass.
Did you know?
Pro tip: the phrase "trade the timeframe you manage" means your profit-and-loss psychology should match the chart you're trading. If you're watching every tick, you're on the 1-minute. If you check once a day, you're on the daily. Mismatches between your management style and your chart timeframe cause emotional decision-making.