Introduction
Time frame alignment is a critical component of top-down analysis, allowing traders to connect higher time frame bias with lower time frame entries. In this guide, we’ll break down the method step-by-step, showing how to transition from a higher time frame to an entry using a structured approach.
Understanding the Three Layers of Time Frame Analysis
My trading approach divides analysis into three key time frames:
- Higher Time Frame (Bias) – Determines market direction.
- Intermediate Time Frame (Structure) – Confirms alignment with bias through change in state of delivery (CISD) and market structure.
- Entry Time Frame (Entry) – Provides the opportunity for executing the trades.
This process ensures all time frames work together, creating the conditions for expansion.
Confirming Higher Time Frame Bias
While this guide focuses on structure and entry, the bias is your starting point.
- Bias is determined using swing points, candle closures, equilibrium, internal and external liquidity as well as phases of price.
Aligning Structural Time Frame
Once bias is set, move to the structural time frame to:
- Confirm the structural time frame to also shift to align (CISD) with the bias timeframe before seeking entries.
- Identify key levels like:
- Fair Value Gaps (FVGs)
- Significant highs or lows
- Order blocks
When price trades into these points of interest and respects them, go to the entry timeframe.
Dropping to the Entry Time Frame
The entry time frame provides the precision trigger:
- Wait for the entry time frame to align with both bias and structure (CISD).
- Look for continuation order blocks or protected swings to form in the anticipated direction.
When all three time frames align in the same direction, that’s when expansion conditions occur.
Time Frame Pairings
Here’s how I align my charts:
- Weekly → 4H
- Daily → 1H
- 4H → 15M
- 1H → 5M
- 30M → 3M
- 15M → 1M
For example, if I want a 5M entry, I align it with 1H structure and daily bias.
Example 1 – 30M to 3M Intraday Reversal
30 Minute Structure: Bullish reversal anticipated after a 30 minute bullish candle closure after sweeping out intraday lows (shown on indicator).
3 Minute Entry: 3 minute CISD forms and a continuation sets up. Can take a positional entry at the open with my stop below the EQ of the 30 minute candle as well as below the breaker low. The stop must allow price to trade into the FVG below if its going to form a continuation.
💡 Pro Tip: Positional entries are ideal if you are unsure if a retracement will occur and you want to get onside
Price expands higher and then has a consolidation. Following the phases of price the expectation would be:
Expansion – Consolidation – Expansion.
If the low is swept and a new protected swing is formed, expansion higher is likely. Waiting for the closure of the 30 minute chart to act as a filter, a setup is formed and a continuation OB is used to get onside.
Both trades would result in a TP, although they are both different entry techniques.
The most important part is aligning yourself with a higher timeframe expansion.
Example 2 – Daily to 1H to 5M
Daily Bias: V shape reversal, retracement into a fair value gap, bearish daily closure.
1H Structure: move higher into fair value gap and opposing candles
5 Minute Entry: With a CISD on the 5-minute chart and a continuation OB, take entry on the close.
Result: -1R. Even valid setups will lose.
Key Takeaways
- Only trade when all timeframes point in the same direction.
- Let the higher time frame set direction, structural time frame set confirmation, and entry time frame provide precision.
- Avoid forcing trades when time frames are misaligned, wait for alignment for the highest probability.
