# Multi-Timeframe Analysis for Beginners · DT Academy > Read a higher timeframe for direction and a lower one for detail: how timeframes nest, how to pair them, and what to do when they disagree. [Back to The DT Intensive](https://www.thedtterminal.com/academy/courses/dt-intensive) Day 14Multi-timeframe analysis Chapters done # Multi-timeframe analysis Day 14 of 26 · 8 min read · By DT Terminal Multi-timeframe analysis means reading a higher timeframe for direction and context, then a lower one for detail. This lesson shows how timeframes nest inside each other, a common way to pair them, and what to do when the two disagree. Unlock the full lesson in the app Worked examples, the quiz and the interactive tools are in the app. Free account. [Continue in the app, free](https://www.thedtterminal.com/login?signup=true&redirect=%2Fjournal%2Facademy%2Fmulti-timeframe-analysis) Chapter 1 of 6 ## Three charts, three jobs Every chart is the same market at a different zoom: four `M15` candles make one `H1` candle ([Day 2](https://www.thedtterminal.com/academy/how-to-read-candlesticks)). Read the market from the top down, and **give each chart one job**. | Chart | Its job | The question it answers | Typical picks | | --- | --- | --- | --- | | Higher | Direction | Which way is the bigger trend, and where are the levels that matter? | D1, H4 | | Middle | Structure | Is price at one of those levels, and is the pullback still going or turning? | H1, M15 | | Lower | Entry | Where exactly is the idea right, and where is it wrong? | M5, M1 | The **higher chart** sets the bias: higher highs and lows, lower highs and lows, or a range (the swings from [Day 10](https://www.thedtterminal.com/academy/market-structure)). Mark the two or three nearest levels. The **middle chart** shows what price does at them. The **lower chart** is only for the entry: it shows the turn early, so the stop sits much closer. **The higher chart outranks the lower ones.** A downtrend on `M5` inside an uptrend on `H4` is usually just the `H4` pullback. Act on the lower chart; **never decide direction there**. Chapter 2 of 6 ## One move on three charts Top-down H4 for direction, H1 for structure, M5 for the entry [Replay in the app](https://www.thedtterminal.com/login?signup=true&redirect=%2Fjournal%2Facademy%2Fmulti-timeframe-analysis%3Fsection%3Done-move%23one-move) Each chart is a zoom into the one on its left. The gold box marks what the next chart shows. Worked example ### Example 01: XAUUSD from D1 down to M5 The worked example, with every number walked through, is in the app. [Continue in the app, free](https://www.thedtterminal.com/login?signup=true&redirect=%2Fjournal%2Facademy%2Fmulti-timeframe-analysis%3Fsection%3Done-move%23one-move) Free account **Go deeper** The `H4` chart shows the uptrend coming back to its old high, now the key level. `H1` shows the same pullback as lower highs and lower lows into that level, then a shift. `M5` shows the low at the level and a shift above the last lower high, well before the `H1` shift prints. The `D1` swing runs from the higher low at 3,842.00 to the higher high at 3,968.50; the pullback is 63.50 of the 126.50 swing, or 50.2%. The `M5` risk is 3,912.00 − 3,897.80 = 14.20, with the stop under the zone. The `D1` high is 56.50 away (56.50 ÷ 14.20 = 3.98R); the `H1` lower high is 19.20 away (1.35R). The sizing: a 10,000 account risking 1% is 100. One lot of gold is 100 ounces on most brokers (100 per 1.00 move), so the `M5` stop allows 100 ÷ (14.20 × 100) = 0.07 lots (99.40 at risk). The `D1` stop allows 0.01. Chapter 3 of 6 ## How far apart the charts should be A common rule of thumb is about 4 to 6 lower candles in each higher candle. `H4` to `H1` is 4, `D1` to `H4` is 6, `W1` to `D1` is 5. Too close, like `H1` and `M30`, and both charts say the same thing. Too far, like `D1` and `M5` (288 candles in a 24-hour day), and you cannot find the higher swings on the lower chart. The last step is often wider, such as `H1` to `M5` (12). That works; you just rebuild more of the `H1` swing yourself. Candles per candle every step, MN down to M1 Green steps sit in the 4 to 6 range, gold ones are workable, dim ones are so close the two charts show nearly the same thing. A stack is three of these chips; the jumps between the ones you pick are what count. Interactive tool ### Timeframe stack checker This interactive tool runs in the app, with your own numbers. [Continue in the app, free](https://www.thedtterminal.com/login?signup=true&redirect=%2Fjournal%2Facademy%2Fmulti-timeframe-analysis%3Fsection%3Dspacing%23spacing) Free account | Style | Higher | Middle | Lower | Steps | Typical hold | | --- | --- | --- | --- | --- | --- | | Scalping | `M15` | `M5` | `M1` | 3 and 5 | Minutes | | Day trading | `H1` | `M15` | `M5` | 4 and 3 | Minutes to a couple of hours | | Day trading | `H4` | `H1` | `M15` | 4 and 4 | A few hours, often closed the same day | | Day trading, wide last step | `H4` | `H1` | `M5` | 4 and 12 | A few hours (the chart above) | | Swing | `D1` | `H4` | `H1` | 6 and 4 | A day to a few days | | Swing | `W1` | `D1` | `H4` | 5 and 6 | Days to a few weeks | | Position | `MN` | `W1` | `D1` | About 4 and 5 | Weeks to months | Common stacks. Steps are how many candles of each chart fit in one candle of the chart above it. Holding times are typical, not rules. **A swing trader's stack** A forex or gold week has five daily candles on most broker charts, which is why `W1` to `D1` is 5. Worked example ### Example 02: The same idea for a swing trader: W1, D1 and H4 The worked example, with every number walked through, is in the app. [Continue in the app, free](https://www.thedtterminal.com/login?signup=true&redirect=%2Fjournal%2Facademy%2Fmulti-timeframe-analysis%3Fsection%3Dspacing%23spacing) Free account Chapter 4 of 6 ## When the charts agree, and when they don't When all three charts point the same way, the trade is with the bigger trend, at a level, with a close stop. Most of the time they do not agree, usually because the lower chart is showing **the higher chart's pullback** up close. Conflict H4 down, M15 up [Replay in the app](https://www.thedtterminal.com/login?signup=true&redirect=%2Fjournal%2Facademy%2Fmulti-timeframe-analysis%3Fsection%3Dagree-or-conflict%23agree-or-conflict) H4 · lower highs and lows M15 · higher highs and lows The M15 uptrend on the right is the last rising leg of the H4 chart on the left, seen up close. On real charts: `H4` has a last lower high at 1.0942 and a last lower low at 1.0815, a downtrend. On `M15` its last few candles climb in higher highs and lows from 1.0815 to 1.0872, last higher low 1.0858. **Same market, two trends.** DT Terminal Charts EURUSD · H4 Higher: down Sample candles built around Example 03's prices, not a record of a real week. DT Terminal Charts EURUSD · M15 Lower: up The last few H4 candles above, up close. The gold line is the M15 higher low that would have to break for M15 to turn down with H4. Chapter 5 of 6 ## What to do when they conflict A common rule while you learn: **stand aside** until the charts agree, or **reduce size** and aim short of the next higher-timeframe level. Interactive tool ### Alignment check This interactive tool runs in the app, with your own numbers. [Continue in the app, free](https://www.thedtterminal.com/login?signup=true&redirect=%2Fjournal%2Facademy%2Fmulti-timeframe-analysis%3Fsection%3Dtrading-a-conflict%23trading-a-conflict) Free account Worked example ### Example 03: EURUSD: H4 down, M15 up The worked example, with every number walked through, is in the app. [Continue in the app, free](https://www.thedtterminal.com/login?signup=true&redirect=%2Fjournal%2Facademy%2Fmulti-timeframe-analysis%3Fsection%3Dtrading-a-conflict%23trading-a-conflict) Free account **The sizing** At 10 per pip per standard lot, risking 100 on the short is 100 ÷ (18 × 10) = 0.55 lots. The smaller long risks half the usual amount, 50: 50 ÷ (20 × 10) = 0.25 lots. Chapter 6 of 6 ## A top-down checklist 1. **Higher chart.** Name the trend, mark the nearest levels, write the bias: "D1 up while above 3,842.00". 2. **Calendar.** Check for high-impact news on the pair ([Day 6](https://www.thedtterminal.com/academy/key-news-events)). 3. **Middle chart.** Is price at a level? Pulling back, ranging or shifting? 4. **Agreement.** If the middle and higher charts disagree, stand aside or size down. 5. **Lower chart.** Wait for your trigger; the stop goes where the idea is wrong. 6. **Room.** The next higher-timeframe level is at least your minimum reward to risk away. 7. **Size and log.** Size from the stop ([Day 4](https://www.thedtterminal.com/academy/how-to-choose-your-risk)); log the timeframes and the bias. **Same timeframes every time.** **Switching charts until one agrees with you** is the most common way top-down analysis goes wrong. **Practise it in the terminal** Check the Economic Calendar Press My Pairs, leave it on high impact, and note any release inside your session before you open the higher chart. Practise it in the backtester Replay `XAUUSD` with `H4`, `H1` and `M5` side by side. Write the `H4` bias before you press play, and tag each trade aligned or conflict. 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