Timeframes in trading: how not to drown in financial markets

GasFeeSobber · 2025-11-05T10:10:30+00:00

The essay discusses the importance of using higher timeframes (HTF) for strategic market analysis and lower timeframes (LTF) for precise entry points in trading. By combining these methods, traders can identify trends and optimize their trades for better profitability while avoiding pitfalls.

GasFeeSobber

2025-11-05 10:10:30

Abstract generation in progress

Imagine: you are looking at a 5-minute chart, all the panic, the price is jumping back and forth, you don’t know where to enter. Then you switch to the daily chart — suddenly everything becomes clear. This is the magic of timeframes.

Higher Timeframes (HTF): your strategic compass

Daily (1D) and weekly (1W) charts are your strategic map. Here you can see the true market structure, without all these minor fluctuations.

For example, on the BTC daily chart you can easily highlight:

Clear trend (up or down)
Liquidity Zones ( where people buy/sell )
Possible reversal points

The main idea: larger timeframes show the intentions of major players. This is what is worth listening to.

Lower timeframes (LTF): your entry point

Here you live. 15-minute, 30-minute daily charts — this is the battlefield for micro trends and precise entries.

On LTF you see:

Higher highs + higher lows (HH/HL) = bullish scenario
Lower highs + lower lows (LH/LL) = bearish scenario

But here's the catch: there's much more noise on the short time frame. So just looking at the LTF is ineffective.

The combo that works: HTF + LTF strategy

Algorithm for bull market:

Analyze the structure on 1D/4H (HTF)
Highlight Fair Value Gaps (FVG) — gaps where the price has not been
Switch to 15-30 min daily charts (LTF)
Look for entry points within these gaps
Entry → Risk/Reward 1:2 minimum

For a bear market: the same process, just a different direction.

How to Identify a Trend Reversal

The trend usually ends when the price breaks the structure (BOS):

There was an ascending trend → suddenly a lower minimum — reversal signal
It is clearer on the 4H than on the 15-min

Returning to LTF is harder to catch — too much trash.

Optimal timeframes for each task

What to do	Chart
Select Direction	1D, 4H
Find entry	15-30 min
Avoid traps	1D trend

TLDR

Wait for big money on HTF, enter on LTF waves. This is not just advice — it's the difference between constant profit and loss.

The philosophy is simple: bigger money moves on larger timeframes. Besides them, your trade is a lottery.

BTC-0,71%

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