Skip to content
S&P 500 Fut—Nasdaq 100 Fut—Dow Fut—Russell Fut—VIX—DXY—US 10Y—WTI Crude—Gold—Silver—Nat Gas—Bitcoin—Ethereum—EUR/USD—GBP/USD—USD/JPY—
Tier 4Lesson 20 of 20

Multi-Timeframe Top-Down Confluence

HTF bias, LTF execution

12 min+90 XP Top-Down Drill

Every concept in this academy comes together here. The higher timeframe tells you where the market is going, the middle timeframe tells you where to be interested, and the lower timeframe tells you exactly when to act.

01One job per timeframe

TimeframeJobQuestions to answer
Daily / 4HBias and draw on liquidityIs structure bullish or bearish? Which pool is price heading for?
1H / 15mPoint of interest (POI)Where is the OB or FVG in discount (longs) or premium (shorts)?
5m / 1mExecutionHas a CHoCH formed inside the POI? Where is the entry FVG and the stop?

The ratio between timeframes should be roughly 4–6×: daily → 4H → 1H → 15m → 5m. Skip too many levels and the lower timeframe stops relating to the higher one.

02Premium and discount

Take the current dealing range — the swing low to swing high that produced the last break of structure. Above 50% is premium (expensive), below 50% is discount (cheap). In a bullish bias, professionals buy in discount; in a bearish bias they sell in premium.

Equilibrium
(range high + range low) ÷ 2
100.0110.0120.0Equilibrium 111.5PremiumDiscount
IllustrativeHigher timeframe: bullish structure, dealing range 105–118. Price has pulled back toward equilibrium — longs become interesting only in discount.

03The lower-timeframe trigger

112.00113.00114.00Short-term highEntry FVGCHoCH
IllustrativeLower timeframe inside the discount POI: selling dries up, a displacement candle breaks the short-term high (CHoCH) and leaves a gap. The pullback into that gap is the entry; the stop goes below the low.
  1. 1Bias: daily bullish, draw on liquidity = the old high at 118.
  2. 2POI: 1H bullish order block in discount below 111.5.
  3. 3Trigger: 5m CHoCH + FVG inside the POI during a killzone.
  4. 4Risk: stop below the 5m low; size from the stop distance.
  5. 5Targets: first at the 5m high, final at the HTF draw (118).
Watch outWhen timeframes disagree

If the higher timeframe is bullish but the lower timeframe keeps breaking down through your POI, the POI has failed. Stand aside until structure realigns — conflict is not a setup.

Key takeaways
  • HTF = bias and target; MTF = point of interest; LTF = entry and stop.
  • Buy discount in bullish bias, sell premium in bearish bias.
  • Equilibrium = the 50% level of the dealing range.
  • Conflicting timeframes mean no trade.
Common mistakes
  • Taking LTF signals against the HTF bias
  • Buying in premium because a 1-minute chart looks bullish
  • Jumping from the daily straight to the 1-minute chart

Complete “Session Killzones” to unlock this challenge.

Go to Session Killzones