The general note for the brothers is:
  • Higher timeframes consistently beat lower timeframes. That means that the patterns that appear on a large time frame will be more important and valuable than the low time frame. The same goes for support at resistance.
  • Multi-timeframe analysis helps traders to enter the market in the best position with a tight stop loss, thereby improving the RR rate in trading.
For this strategy, the smaller timeframe is used as the trigger chart for the entry signals, and the reason for us to enter the market will lie in the large timeframe.

Let's go through a few examples.

W1 frame EURUSD chart

The figure below is the time frame W1, where the horizontal line is the resistance on W1. Pinbar bearish reversal pattern confirmed strong sell signal. We can find the trigger signal at frame D1.


EURUSD formed a range resistance from 1.1500 - 1.1600 between August and October 2015, after which the price dropped and was retested in April and May 2016.

The zone 1.1500 - 1.1600 is the key resistance on the time frames MN and W1. When prices returned to retest this threshold in 2016, the price reversed shortly thereafter. Beginning on the H1 and H4 charts there was a strong reversal. The bearish pinbar candlestick pattern appearing on the D1 timeframe is an early signal of reversal. This is a very strong and reliable sell signal.

We can see a reversal formation occurring on the H4 and D1 timeframes in the charts below:

Frame H4:


Frame D1:


The bearish pinbar pattern on the W1 frame was also formed, but waiting for this signal for a long time, the entry point may not be beautiful anymore. And more importantly, the stop loss will also be very large, which will greatly reduce the RR rate.

The above is the simplest way you can analyze multiple timeframes and trade with popular reversal candlestick patterns. But note, no matter how strong the strategy is, there is a chance of losing money. So, you should not joke with the market's probability but always manage your capital closely.