TradingView

How to Use Multi-Timeframe Analysis and What It Means

Education
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In this video tutorial, our team based out of New York City walks you through multi-timeframe analysis including what it means and how it works. Multi-timeframe analysis (MTF) is a process in which traders can view multiple timeframes at once on a single chart. For example, if you're looking at a 30-minute chart you can quickly add a daily Moving Average and weekly Bollinger Bands . Multi-timeframe analysis is the process of looking at multiple timeframes at once and using them to make better decisions when trading or investing.

Getting started with multi-timeframe analysis on TradingView is easy:

Step 1 - Add an indicator to your chart
Step 2 - Open the indicator's settings and find the Resolution parameter in Inputs
Step 3 - Adjust the resolution to the timeframe of your liking

This process works for most of the built-in indicators on TradingView. You can have several timeframes visible at once so you always know the most important price levels. MTF works by the minute, hour, day, week and month.

In addition, Pine coders can use the same `resolution` parameter we use in our built-in indicators in their own scripts. By simply adding it to a script’s `study` declaration statement, coders now have an easy way to add MTF functionality to scripts and let users decide the timeframe they want the indicator to run on.

We hope you enjoy this video tutorial and please press like if you find it helpful. If you're already an expert at multi-timeframe analysis, please leave some tips and educational lessons in the comments so others can learn from you.

Additional reading:

A New ‘Resolution’ Parameter Makes Multi-Timeframe Analysis Easy (TradingView blog)
Learn more about multi-timeframe analysis from other traders
Explore the public library for scripts using multi-timeframe analysis
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Read more about the new tools and features we're building for you: https://www.tradingview.com/blog/en/

Comments

This is definitely useful for some traders; appreciated TradingView for this tutorial video; thank you <3
+4 Reply
Smooth Curve or Stair-Step?

Technically, the MTF 20-Day MA of daily Close is computed once a day at the closing price. In the TLT 30-minute chart, the MA20 is represented as a continuously changing variable, shown as a smooth curve. Should it be? In my thinking, it would be a flat constant value changing only after the day's Close. It would be a stair-step variable. Similarly, the weekly Accum/Dist variable would show as three flat steps. It shouldn't change continuously through the trading day. (You could, I suppose, recalculate the 1-Week A/D as a 5-Day A/D to break it up into smaller daily steps -- Mon/Fri, Tues/Mon, Wed/Tues, etc.)

My question comes down to whether chart settings support drawing MTF values as a stair-step alternative to a continuous line? I couldn't tell that from the video.

NOTE: I am taking the MTF 20-Day MA as a running average of 20 daily bars. Your chart approximates a running average of 260 30-minute bars (20 days x 13 bars/day). They aren't the same.
+2 Reply
@tobyz7, Good question. The MTF data shown by indicators like the built-ins using the new `resolution` parameter in their `study()` declaration statement is using "gaps". This means that the higher TF value is only shown on the chart when the higher TF interval completes. TV's plot-rendering, however, joins those discrete data points on the chart, which can understandably lead traders to infer that intermediary data points exist on historical bars, but they don't. In realtime there can be no confusion, as indicators using the new MTF feature will never show HTF data that has not been reliably calculated on confirmed prices.

This script shows the difference between using gaps or not when fetching HTF 1D data of an MA with period 20. The pink line uses no gaps, while the blue one does. So the blue line shows what you will get with the built-ins at higher TF's:
//@version=4
study("Gaps vs No Gaps", "", true)
res = input("D", type = input.resolution)
ma = sma(close, 20)
maGaps = security(syminfo.tickerid, res, ma, gaps = barmerge.gaps_on)
maNoGaps = security(syminfo.tickerid, res, ma)
plot(maGaps, "maGaps")
plot(maNoGaps, "maNoGaps", color.fuchsia)


While Pine coders can choose which display mode they will use when using `security()` instead of the new `resolution` parameter, there is currently no way for traders to choose between both plotting types when using the built-ins' automatic MTF feature. Could be a useful improvement to think of for the future. Feel free to ask if any of this isn't clear.
+2 Reply
tobyz7 PineCoders
@PineCoders, I understand what you're saying. That's a great example to show the gap/no-gap difference. "Could be a useful improvement .... for the future." I would personally prefer the 'no-gap' line, but even seeing both could be instructive.

For your future improvement, maybe you can consider two check boxes in the Settings dialog -- Gap and No-Gap. Choose Gap as the default if you wish, but allow the user to override it or even to see both display modes.

Thanks for your reply.
+1 Reply
@tobyz7, 'xactly. Think that would be optimal. Would also be nice if coders using `resolution` could also specify that gaps/no-gaps default in their code. Feasibility will first need to be confirmed by Pine team, then the improvement will have to make it in our Top Priorities, but certainly looks like a worthwhile effort.

Thx for asking the question. Will be useful to many other users.
+1 Reply
It is indeed a very cool function!
+1 Reply
@ftcyeh, Glad you like it!
Reply
Good post! Thanks for sharing!!
+1 Reply
Thank you.
+1 Reply
Thank you!!!
+1 Reply
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