How to perfom a multi timeframe analysis!

Multi-timeframe trading describes a trading approach where the trader combines different trading timeframes to improve decision-making and optimize their chart analyses. The goal of multi-timeframe trading is to enhance the profit profile of individual trades by trading long-term signals in a short-term timeframe. Typically, traders make use of one so-called higher timeframe and one lower timeframe. The higher timeframe is used to analyze the longer-term chart and trend context to get a general sense of market direction and sentiment. Traders try to establish a directional bias (long, short, or neutral) on the higher timeframe and then look for specific trading opportunities in the higher timeframe direction on their lower timeframes. The lower timeframe is hereby used to time entries and manage trading positions.