Multi-time-frame analysis is a technique for identifying trends and determining their direction. The technique is used by trend-following traders — and your interest in this technique would indicate that you intend to be that type of trader.
Trend-following can be applied to short-term trading (scalping and day-trading), to intermediate-term trading (swing trading), and to long-term trading (position trading). And multi-time-frame analysis works with each of those styles of trading.
The number of time-frames used in multi-time-frame analysis is typically 3, regardless of the style of trading (short-term, intermediate-term, or long-term). Triple-chart analysis, as it’s sometimes called, goes back more than a century to the days of Charles Dow, and it has stood the test of time, across all markets. It works better than 2-chart analysis, or 4-chart analysis, or…you get the point.
In your post, you have listed 4 time-frames (H4, H1, m30, and m5), and you referred to two additional time-frames (W1 and D1). I think you’re looking at way too many time-frames. More is not better, in multi-time-frame analysis.
The choice of [I]which 3 time-frames to use[/I] often varies from one trader to the next, based on their individual styles of trading. But, it doesn’t have to be that way, as you will see in a moment.
The essence of multi-time-frame analysis is to find [I]agreement[/I] across 3 time-frames — either all trending up, or all trending down. In your post, you gave an example of time-frames which do not agree, and asked which way you should trade. If you’re using multi-time-frame analysis correctly, the answer is [I]neither direction,[/I] until your time-frames come into agreement.
Stated as simply as possible, the point of multi-time-frame analysis is to find a trade-able trend on the highest time-frame, confirm it on the intermediate time-frame, and find a suitable entry (in the direction of the trend) on the lowest time-frame.
Agreement is everything. Disagreement means [I]look elsewhere.[/I]
Check out a multi-time-frame analysis method called 301 Moved Permanently. The title refers to agreement across 3 time-frames, as in “getting your ducks in a row”. This system, devised by Andy Perry, offers a fool-proof way of determining the trend on each of your 3 time-frames, and instantly determining whether you have agreement across your time-frames. If you are a trend-trader, that’s powerful information.
The 3 Ducks System is not a complete trading system, and does not attempt to be. There are at least a dozen critical elements of a successful trading system which are not addressed in the 3 Ducks System, such as: your time-availability, your risk-tolerance, the style of trading which best suits you, the sessions and/or pairs you are most comfortable trading, the method of entering and exiting trades (market orders or pending orders) you are most comfortable with, etc.
But, a “trend-trader” who can’t determine the trend — or when to enter it — doesn’t have much hope of success in this business. The 3 Ducks System solves that problem for you.
The 3 Ducks Trading System uses the same 3 time-frames for all styles of trading (with the possible exception of scalping). Those time-frames are H4, H1, and m5. If that raises questions in your mind, save them until you have done some serious study of Andy’s thread, and until you have read his free eBook on the 3 Ducks System at least twice.
Follow the link I gave you above, and get started on simplifying the basic core of multi-time-frame trading.