A Smart Money 'How To' for Multi-time frame Trading

NZD/CHF
Below in the updates I will break down my analysis of NZD/CHF and how I use Multi-time frame analysis to confidently and healthily create a bias and build a story that lead to short term and long term (and non-objective) trade setups.

Further detailed analysis and charts below

Happy Trading!
- FourXtrader

Comment:

On the weekly Time Frame:
1. Identify trend and current story: Downtrend that just broke its lowest low and is currently strongly retracing toward our most recent BOS to its fib 38.2%
a. Here, we are assuming a retrace and we need to figure out where a retrace is likely to reverse back to our downtrend – This is where Supply and Demand zones come in handy
2. Identify most recent HTF CHoCH and BOS and the supply/demand zones that were created from them
a. Here, we had multiple successful BOS to the downside. I want to point out that the Supply zone created by our initial BOS has yet to be mitigated and is holding a ton of liquidity – especially since there’s a massive FVG right below it that has left us with a standing imbalance.
3. Identify strong support and resistance levels
a. Here, we have a strong weekly resistance level that coincides with our 70.70% retrace

Weekly Bias: After reviewing the weekly chart, I believe in order to continue in this sustained downtrend and create new all-time-lows, we need to mitigate some HTF liquidity zones above.
- Trade Bias:
o Immediate Bias = Short-term long (mitigate upper supply levels)
o Subsequent Bias = Long-term short (continue HTF downtrend)

Comment:

On the daily time frame:
1. Identify trend and current story: Recent breakout of downward channel with resistance forming on retrace after a strong push from buyers. Most recent swing high is sitting at a
2. Identify most recent HTF CHoCH and BOS and the supply/demand zones that were created from them
a. Here, after consecutive BOS to the downside, we most recently broke out of our bearish channel and created a CHoCH to the upside.
i. We are now on alert for a potential downward retrace toward our CHoCH’s demand zone to pick up liquidity before a larger move upward.
3. Identify strong support and resistance levels
a. Here, A strong daily resistance level is sitting right on our 50% fib retracement and above a big supply zone.
i. This would be a good level for our first Take Profit
Daily Bias: After reviewing the daily chart, I see a ton of liquidity sitting above us and sellers running out of steam for a further push down. I do think we fight in this area for a little bit before making a push for our demand zone liquidity below.
- Trade Bias:
o Immediate bias = Short term Short (demand zone mitigation)
o Subsequent Bias = Mid-Term long (BOS to the upside)

Comment:

On the 2 hour time frame: Now that we’ve identified our HTF bias and objective, we want to see any hidden trends on our middle time frame, the 2 hr. Since our cur
1. Identify trend and current story: Since our immediate bias is to mitigate demand zones below, we would like to see plenty of unmitigated demand zones on the lower time frames.
a. Here, we see just that – at least 2 large demand zones untapped with liquidity formed by a strong upward trendline
2. Identify most recent HTF CHoCH and BOS and the supply/demand zones that were created from them
a. Here, after consecutive BOS to the upside, we have failed to create a new higher high and are approaching a CHoCH to the downside
i. This would be our initial signal toward trade entry
3. Identify strong support and resistance levels
a. Here, we have support and resistance levels below and above us indicating a potential choppy buildup of price action ahead of us and potential wedge creation to support a deeper push to the downside

2HR Bias: After reviewing the 2HR MTF chart, I am awaiting a CHoCH on this time frame to then take action on my 15 minute chart (below) and enter a trade if the signals present themselves.
In this case keeping in mind that we might have to be patient while liquidity builds and we consolidate at these levels
- Trade Bias:
o Immediate bias = Short term short (once choch created)

Comment:

On the 15 minute time frame: Having just mitigated our MTF supply zone, we are looking to see if the LTF has any zones to offer a more concise understanding. This is where we will set up our trade entries and look for signals of a reversal
1. Identify trend and current story: We are seeing a stall at the swing high level and price starting to consolidate. We have successfully created a CHoCH and BOS and just mitigated the supply zone created by our BOS.
a. Here, if we had seen this trade prior to our mitigation, that would have been our signal to enter the trade. However, we now have to wait for our next BOS and subsequent supply zone mitigation as our signal to enter a short trade
2. Identify most recent HTF CHoCH and BOS and the supply/demand zones that were created from them
a. Above ^. However, we also just mitigated our LTF demand zone which could be a source of liquidity.
3. Identify strong support and resistance levels:
a. Here, We are currently sitting at a strong resistance level and if buyers wanted to turn it into support, we would be seeing large amounts of buying coming in at this level.
15 Minute Bias: In order to create another BOS to the downside on the MTF, the LTF price action needs to find its balance and liquidity. With this strong level right below us acting as support (and a potential double bottom forming) my HTF analysis and bias will require further support from the LTF to justify. This means that I will be awaiting further price action and consolidation at this level to propel a larger move toward my objective.
- Trade Bias:
o Immediate Bias = NA (Consolidation)
o Subsequent Bias = Short-term Short

Comment:

TL;DR:
Weekly Trade Bias:
o Immediate Bias = Short-term long (mitigate upper supply levels)
o Subsequent Bias = Long-term short (continue HTF downtrend)

Daily Trade Bias:
o Immediate bias = Short term Short (demand zone mitigation)
o Subsequent Bias = Mid-Term long (BOS to the upside)

2HR Trade Bias:
o Immediate bias = Short term short (once choch created)

15Min Trade Bias:
o Immediate Bias = NA (Consolidation)
o Subsequent Bias = Short-term Short