Identifying Levels for Trade Arguments
This video is about how I use time frames in my trading & the time frames I use for my overall trade arguments, inspired by a string of questions I had in the Haven.
Key Concepts Explained
- 1Top-Down Analysis Approach
Daily (D1) is the starting point
Used to establish major levels and a broad bias.
Higher time frames = stronger levels.
Example: Sketching resistance and support zones roughly.
H4 (4-hour chart)
Used to refine trade ideas, test daily levels.
Allows more precise visualization of price interaction.
Helps determine whether the level is clean or messy.
H1 (1-hour chart)
Used to pinpoint entry and invalidation points.
Often reveals smaller consolidation areas and micro-patterns not visible on higher TFs.
Trade Setup Workflow
Identify Strong Daily Levels
Look for price reactions, rejections, flips (support becoming resistance, etc.).
Use body/wick interactions to define key zones.
Check H4 Interactions
Determine if price respects those daily levels.
Confirm or invalidate your bias based on how cleanly levels are tested.
Pinpoint Entry and Exit on H1
Look for consolidation breaks, candle wicks, retests.
Example: Consolidation breaks at 140, reclaim of 138.
Increased Risk-Reward by fine-tuning entries and stops.
Risk Management and Invalidation
If no clean invalidation exists on higher TFs, move to lower ones.
Consolidation breakdowns (especially H1) used to define invalidation points.
Early exit conditions
Price re-enters H1 consolidation zone.
Loss of all Confluence factors (no pattern support, messy reactions).
Situational Flexibility
Decisions like front-running a level depend on
Market context.
Confidence in how price has behaved previously at the level.
Emphasis on not forcing a setup.
If no clear level or invalidation exists, it’s okay to skip.
Final Takeaways
Use Daily for bias, H4 for refinement, H1 for execution.
Don’t clutter charts with every time frame (avoid going below H1 or above D1 for setups).
Confluence is key - more layers of evidence = stronger setup.
Stay flexible, trade what you see, not what you want to see.