How do you determine which timeframes are considered higher and lower relative to the one you’re currently using? Is there a specific ratio or guideline to follow?
In general, I look at the Monthly, Weekly, and Daily as higher time frames. I look at 1 Hour and below as lower time frames, and I see the 4 Hour as the bridge between the higher and lower timeframes.
I use a higher time frame for direction and a lower time frame for setups. I base my higher time frame and setup time frame pairings on a 12-16x ratio.
For example:
H4 and M15 (4 hours / 15 minutes = 16x)
H1 and M5 (1 hour / 5 minutes = 12x)
M15 and M1 (15x)
If I were trading setups on the H1 I would use the Daily chart as the higher timeframe where I consider “the day” to be the start of London until the end of New York which is 14 hours and still fits within the 12-16x ratio.
Some people go 2 to 3 timeframes higher to get to roughly the same place, but for me having a mathematical basis allows me to plug in oddball time frames like H8 and M30 or H3 and M12.
If you trade with indicators, you probably noticed that some mismatched time frame pairings will cause your lower indicators to give conflicting signals when price is at a zone. It’s not lost on me that the default period for oscillating indicators like RSI or Stochastic is 14, which is the mean of 12 - 16.
There are lots of ways to get things done and none are necessarily better than another way, this is just what works for me.
Good Luck!
1 Like
I usually go one or two levels up or down—like if I’m on the 4H, I check the daily for higher and 1H for lower. It helps keep things simple and in perspective. It’s more about finding what works for the strategy I’m using.
Below 15M are timeframes for fast-paced trading like scalping where you catch short-term opportunities. If you want to hold trades for 15, 1H or longer, I would advice to conduct analysis on 30M timeframe min
I don’t want to sound like a spoilsport, here, but I’m pretty sure that the overwhelming majority of people trading for a living (including institutional traders, but not only) aren’t actually using timed charts at all … or, at least, they’re not using them as their primary charting method.
Charts on which the bars are defined by periods of time are mostly the preserve of retail traders, I think. (And although we can’t tell with certainty what proportion of retail traders might have any success worth talking about, the UK’s FCA think it’s well under 1%, and they say so openly, and I have absolutely no reason at all to doubt them.)
Investors, of course, are almost universally using timed charts - but that’s a whole different ball-game and subject, isn’t it?
Helloooo! 
I think this can also depend on the strategy you’re using. Incorporating different time frames serve different purposes (spotting an entry, seeing the overall trend, etc.). 
And if the different time frames you’re using are able to provide you with these information, then I think that would be a good start. Just in case you want to know more, here’s a lesson from the school that you might want to check out.
Higher and lower timeframes usually depend on the type of trading you are doing. Higher timeframes mean longer period of time (daily, weekly, or monthly). They are suitable to spot bigger trends and for long-term trading.
Lower timeframes mean shorter period of time (1-minute, 5-minutes, or 15-minutes). They are great for scalping or intraday trades.
I am still figuring out how to use balance both the timeframes but I have come to the conclusion that higher timeframes would be suitable when I want to hold a position for long time and lower timeframes for just entry/exit.
I keep it simple: the higher timeframe is 4-6x the current one (e.g., 1H → 4H/1D), and the lower timeframe is 4-6x smaller (e.g., 1H → 15M/10M). It’s about zooming in or out for clarity.
Well, yea, a lot of institutional traders focus on things like order flow, volume profiles, and non-timed charts to gain an edge. With that said, timed charts are super common with retail traders because they are quite simple and easy to use. I think it is less about chart types but more about how well a trader can understand their tools and strategies.
That’s a big odds on FCA stats, I wonder how retail traders can improve that?
Higher timeframes (like daily or weekly charts) show long-term trends and broader market moves, while lower timeframes (like 5-minute or 1-hour charts) provide detailed insights into short-term price action. The key is using both to align your strategy with the market’s direction.
100% agree whichever timeframes you prefer should align with the strategy and to analyse market data.
Most people use two time-frames to ensure that their trades on the shorter time-frame align with the more significant trend of the higher time-frame.
I wonder why those traders don’t simply put a long-duration MA across their trading time-frame chart?