Section Chief ICT Trading Concepts Course, Session 26 — The Multi-Timeframe Top-Down Framework
The same FVG: why is it a killer trade for someone else but a trap for you? The difference is the timeframe. Skilled traders use the weekly chart to tell the story, the daily chart to set the direction, and the 15-minute chart to find an entry location.
ICT’s multi-timeframe roles (a four-layer framework):
Layer 1: Monthly/Weekly — The narrative layer.
Answer just one question: Where is price positioned on the higher timeframes? Is it deep in premium or deep in discount within a larger range? Where is the next higher-timeframe liquidity pool (previous month’s highs/lows, higher-timeframe EQH/EQL)? This layer determines whether your outlook for the next few months is bullish or bearish.
Layer 2: Daily/4H — The directional layer. (Most short-term traders start their analysis here.)
Determine the Daily Bias: the direction price is likely to gravitate toward today. Look at the daily structure (BOS/CHoCH), which side was swept yesterday, and which pool is most likely to be swept today.
Layer 3: 1H/15m — The location layer.
In the direction of the Bias, mark candidate POIs: OBs, FVGs, Breakers, and OTE zones aligned with the HTF direction. (This is also what we work through together every day.)
Layer 4: 5m/1m — The execution layer (Killzone only).
Once price enters a POI, switch to a lower timeframe and wait for confirmation: liquidity sweep + displacement + MSS + retracement. Then enter, set your stop, and define your target. Trading on these timeframes is scalping; most people can simply use the 15m chart.
Pay attention to how the higher- and lower-timeframe narratives work together:
HTF bullish + LTF bullish = the golden setup for longs
HTF bullish + LTF bearish = wait for a bullish MSS on the LTF (a signal that the pullback has ended)
HTF bearish + LTF bullish = a rebound; don’t chase longs—wait for a shorting opportunity
HTF bearish + LTF bearish = the golden setup for shorts
To recap, analysis flows from higher to lower timeframes: the higher timeframe sets the context for the lower one. The higher timeframe determines whether you can take a trade; the lower timeframe only determines where to take it.
The same FVG: why is it a killer trade for someone else but a trap for you? The difference is the timeframe. Skilled traders use the weekly chart to tell the story, the daily chart to set the direction, and the 15-minute chart to find an entry location.
ICT’s multi-timeframe roles (a four-layer framework):
Layer 1: Monthly/Weekly — The narrative layer.
Answer just one question: Where is price positioned on the higher timeframes? Is it deep in premium or deep in discount within a larger range? Where is the next higher-timeframe liquidity pool (previous month’s highs/lows, higher-timeframe EQH/EQL)? This layer determines whether your outlook for the next few months is bullish or bearish.
Layer 2: Daily/4H — The directional layer. (Most short-term traders start their analysis here.)
Determine the Daily Bias: the direction price is likely to gravitate toward today. Look at the daily structure (BOS/CHoCH), which side was swept yesterday, and which pool is most likely to be swept today.
Layer 3: 1H/15m — The location layer.
In the direction of the Bias, mark candidate POIs: OBs, FVGs, Breakers, and OTE zones aligned with the HTF direction. (This is also what we work through together every day.)
Layer 4: 5m/1m — The execution layer (Killzone only).
Once price enters a POI, switch to a lower timeframe and wait for confirmation: liquidity sweep + displacement + MSS + retracement. Then enter, set your stop, and define your target. Trading on these timeframes is scalping; most people can simply use the 15m chart.
Pay attention to how the higher- and lower-timeframe narratives work together:
HTF bullish + LTF bullish = the golden setup for longs
HTF bullish + LTF bearish = wait for a bullish MSS on the LTF (a signal that the pullback has ended)
HTF bearish + LTF bullish = a rebound; don’t chase longs—wait for a shorting opportunity
HTF bearish + LTF bearish = the golden setup for shorts
To recap, analysis flows from higher to lower timeframes: the higher timeframe sets the context for the lower one. The higher timeframe determines whether you can take a trade; the lower timeframe only determines where to take it.