Multi-timeframe framework · Month → 15 Mins

Top-down analysis: from the monthly chart to the 15-minute entry

Stop trading one chart in isolation. Top-down analysis stacks the timeframes so the big picture chooses your direction, the mid timeframes find the zone, and the lowest timeframe times the entry. Here's exactly what to read on each — with a sample diagram and a live chart you can practise on.

The funnel

One trade, five timeframes

Each timeframe has one job. Work top-down and never skip a step — higher timeframes always win the argument.

Step 1 · Monthly
Bias

Direction

Decide the long-term trend and whether you're hunting buys or sells. Nothing below this overrides it.

Step 2 · Weekly
Context

Premium / discount

Locate price inside the bigger range and the key liquidity it's drawn toward.

Step 3 · Daily
Setup

Structure & POI

Confirm the structural shift (BOS/CHoCH) and mark the point of interest to trade from.

Step 4 · 4-Hour
Refine

Zone & sweep

Refine the daily POI, watch for the liquidity sweep and the fair value gap.

Step 5 · 15-Min
Trigger

Entry

Take the entry on a confirmation (CHoCH), with stop and target defined before you click.

1. Monthly — the direction & bias

The monthly chart is your compass. You're not entering here; you're deciding which way the wind blows so every lower-timeframe decision agrees with it.

What to look for

  • Overall trend: a series of higher highs & higher lows (bullish) or lower highs & lower lows (bearish).
  • Where price sits in the multi-year range — near long-term highs, lows or mid?
  • The major monthly level price is reacting to (a prior monthly high/low or a big round number).
  • Your one decision: "Am I hunting buys or sells over the coming weeks?" Write it down.
HL HL HL HH HH HH MONTHLY — overall direction & bias Bias: BULLISH → only seek buys
Sample: bullish monthly structure (HH / HL). Illustrative schematic, not a live signal.

Live monthly chart — XAUUSD (switch the symbol top-left to your pair):

Rule: if the monthly is bullish, you ignore every short setup on the lower timeframes — and vice versa. The big timeframe always wins.

2. Weekly — premium / discount & liquidity

The weekly tells you whether price is "expensive" or "cheap" within the bias, and which pool of liquidity it's likely heading for next.

What to look for

  • The dealing range (last major weekly swing high to swing low) and its 50% equilibrium.
  • Premium vs discount: in a bullish bias you want to buy from discount (below 50%), not chase price in premium.
  • Liquidity targets: weekly highs (BSL) and lows (SSL) price is drawn to take.
  • Weekly candle phase (CRT): is the week likely still ranging, or already expanding?
Range high — buy-side liquidity (BSL) Range low — sell-side liquidity (SSL) Equilibrium 50% Premium (sell) Discount (buy) WEEKLY — premium / discount & key levels
Sample: weekly dealing range with premium/discount and liquidity. Illustrative schematic.

Live weekly chart — XAUUSD:

Rule: only continue down to the daily when price is in a sensible part of the range for your bias — discount for buys, premium for sells.

3. Daily — structure shift & POI

This is where the setup forms. You're confirming that order flow agrees with your bias and marking the precise area you'll trade from.

What to look for

  • Break of Structure (BOS) in the direction of your bias — confirmation that momentum is aligned.
  • Change of Character (CHoCH) if you're anticipating a reversal at a weekly level.
  • The POI — the daily order block or fair value gap left behind by the impulsive move.
  • A clear invalidation: the level beyond which the idea is simply wrong.
prior high BOS Daily POI (order block / demand) DAILY — confirm the shift (BOS) & mark the POI
Sample: daily BOS with a marked point of interest (POI). Illustrative schematic.

Live daily chart — XAUUSD:

Rule: no daily POI in a valid location = no trade. You wait. Patience here is the edge.

4. 4-Hour — refine the zone, sweep & FVG

The 4-hour turns a wide daily POI into a precise zone, and shows you the manipulation (sweep) that usually precedes the real move.

What to look for

  • A refined 4H order block or FVG inside the daily POI — tighter entry, smaller stop.
  • A liquidity sweep: price dipping just beyond an obvious high/low to grab stops before reversing.
  • Displacement away from the zone — a strong 4H candle confirming intent in your direction.
  • The fair value gap the displacement leaves, a likely retracement target for your entry.
refined 4H demand zone (POI) liquidity sweep FVG 4-HOUR — refine the zone, see the sweep & FVG
Sample: refined 4H zone with a liquidity sweep and FVG. Illustrative schematic.

Live 4-hour chart — XAUUSD:

Rule: the cleanest entries come after the sweep, not before. Let the trap spring, then trade the reversal.

5. 15-Minute — the entry & the trade

Everything above has built the case. The 15-minute chart is purely about timing a precise, low-risk entry once price reaches your zone.

What to look for

  • Price tapping the 4H zone you refined, ideally after a sweep.
  • A 15-minute CHoCH — the first break of internal structure confirming the reversal in your direction.
  • Entry on the retest of that shift or the 15m FVG it created.
  • Stop beyond the swept extreme; target the next liquidity / opposite side of the range — aim for 1:3 or better.
TP (1:3) Entry SL CHoCH enter long 15-MIN — entry trigger (CHoCH) & the trade
Sample: 15-minute CHoCH entry with stop and target (1:3). Illustrative schematic.

Live 15-minute chart — XAUUSD:

Rule: if the 15m never gives a clean trigger at your zone, you skip the trade. The setup must come to you — you never force the entry.

Putting it all together

One coherent thought, top to bottom:

  1. Monthly: bullish bias — buys only.
  2. Weekly: price in discount, with weekly highs (BSL) as the draw on liquidity.
  3. Daily: bullish BOS confirms flow; mark the daily demand POI.
  4. 4-Hour: price sweeps a low into the POI and displaces up, leaving an FVG.
  5. 15-Minute: CHoCH at the zone → enter long on the retest, stop below the sweep, target the weekly highs.
Reality check: top-down analysis stacks probability in your favour — it is not a guarantee. Higher-timeframe levels can break, sweeps can extend, and not every day offers a clean setup. Trade only when all timeframes agree, always with a stop and proper sizing. Educational content, not financial advice.
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Risk warning & disclaimer. Trading forex, gold (XAUUSD) and CFDs carries a high level of risk and may not be suitable for every investor. Leverage can work against you as well as for you. Past performance and any signals, analysis, levels or strategies shared by FXLiquidityHub are for educational purposes only and are not financial advice or a guarantee of future results. Never trade with money you cannot afford to lose, and seek advice from an independent, licensed financial advisor if needed. You alone are responsible for your trading decisions.