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Timeframe Conversion & Correlation Matrix

Which patterns hold across 5m → daily → weekly. Smart traders scan multiple timeframes. One timeframe = blind.

The Multi-Timeframe Principle

One timeframe sees one perspective. Smart traders don't look at one chart. They scan 5m for entries, 1h for confirmation, 4h for trend, and daily for institutional structure. Alignment across timeframes = conviction. Conflict = wait.

This cheatsheet shows you which patterns hold at each timeframe, how to align them, and how market volatility should shift your timeframe choice. Pin this. Study it. Reference it before every trade.

The 7 Timeframes (Why Each Matters)

Each timeframe reveals a different layer of market structure. Master all seven.

⚡

Scalp Frame

5m

Noise, use for micro-entries after 4h confirmation

Best For

Scalping · Breakout confirmation · Quick exits

Key Characteristics

  • •High noise, false breaks common
  • •Use only with higher TF confluence
  • •Entry point refinement on trend
  • •Watch for break-and-retests
✓

Intraday Confirmation

15m

Filters 50% of 5m false breaks

Best For

Day trading setup · Entry filtering · Quick reversals

Key Characteristics

  • •Better structure than 5m
  • •Requires 1h+ bullish bias
  • •Good for tight ranges
  • •Watch RSI divergences
🎯

Decision Frame

1h

Where most momentum plays live

Best For

Day trades · Swing entries · Momentum confirmation

Key Characteristics

  • •Sweet spot for intraday traders
  • •Momentum setups high-probability
  • •Clear support/resistance
  • •RSI/MACD signal alignment
📈

Swing Frame

4h

Medium-term trend clarity

Best For

Swing trades · Position structure · Trend confirmation

Key Characteristics

  • •Most reliable pattern formation
  • •Institutional accumulation visible
  • •Multi-day moves setup
  • •Primary trend indicator
💼

Position Frame

Daily

Where institutions place big bets

Best For

Position trades · Long-term bias · Weekly structure

Key Characteristics

  • •Institutional order flow evident
  • •Major support/resistance zones
  • •Multi-week trends form
  • •Macro sentiment shifts
🌍

Market Structure

Weekly

The long-term bias

Best For

Macro context · Bias confirmation · Risk/reward zones

Key Characteristics

  • •Bull/bear market structure
  • •Multi-month trends
  • •Breakout resistance levels
  • •Accumulation/distribution phases
🔮

Macro Regime

Monthly

Bull/bear/consolidation context

Best For

Market regime · Timeframe bias · Long-term bias

Key Characteristics

  • •Overall bull vs. bear regime
  • •Multi-year consolidations
  • •Major support/resistance locks
  • •Determine short-term direction

The Timeframe Matrix: Pattern Strength

Each pattern has different strength at different timeframes. Green = use it. Yellow = confirm with another signal. Red = noise. Gray = N/A.

Pattern5m15m1h4hDailyWeekly
Doji
Candlestick
WeakWeakModerateStrongStrongModerate
Engulfing
Candlestick
ModerateModerateStrongStrongStrongStrong
4h Consolidation
Chart Pattern
N/AModerateModerateStrongStrongStrong
SIRII (Squeeze)
Indicator Pattern
ModerateModerateStrongStrongModerateN/A
Flash Crash / Spike
Event
StrongStrongModerateWeakWeakWeak
Break Above Resistance
Structural
WeakModerateModerateStrongStrongStrong
Retests of Lows
Structural
ModerateModerateStrongStrongStrongStrong
Divergence (RSI/MACD)
Indicator
WeakModerateModerateStrongStrongStrong
Breakout Rally (5%+)
Event
StrongStrongStrongStrongModerateWeak
Moving Avg Crossover
Indicator
WeakWeakModerateStrongStrongStrong

Legend

Strong — Pattern holds, high-probability entry
Moderate — Visible, needs confirmation
Weak — Exists but prone to fakes
N/A — Doesn't apply at this TF

Alignment Rules (When to Trade)

The strength of your entry depends on how many timeframes align with your trade idea.

All Timeframes Aligned

Example

5m, 15m, 1h, 4h, daily all bullish

Conviction

🟢 Highest Conviction

Action

Take full position. Scale out into strength.

Two+ Timeframes Aligned

Example

4h + daily both bullish; 1h neutral

Conviction

🟡 Moderate Conviction

Action

Take 70-80% position. Use tighter stops. Require entry confirmation on lower TF.

Only One Timeframe Bullish

Example

1h bullish; 4h + daily bearish

Conviction

🔴 Low Conviction

Action

Skip trade. Wait for higher TF alignment or confirmation.

Timeframes Conflicting

Example

5m/15m up, 4h down, daily down

Conviction

⚠️ Dangerous Setup

Action

Wait for lower TF to catch up to 4h trend. If it doesn't within 1–2h, exit.

When Timeframes Disagree

Daily UP + 4H DOWN + 1H UP = WAIT

  • The 4H hasn't caught up to the daily. Wait 1-2 hours for alignment.
  • If 4H doesn't flip up within 2 hours, the daily move may be exhausted.

Daily DOWN + 4H UP + 1H UP = CAUTION

  • Counter-trend setup. Reduce position size by 50%.
  • Use tighter stops (half normal distance).
  • Only take if 1H AND 4H both show strong volume confirmation.

Daily SIDEWAYS + Lower TFs Disagree = SIT OUT

  • No edge when the daily is ranging. Lower TFs will whipsaw.
  • Wait for daily to break out of range, then align lower TFs.

Correlation Quick-Ref

Key market pairs and how they move together. Use these to validate macro context before entry.

Bitcoin → Altcoins

0.85+

Very strong (altcoins follow BTC)

Action: Always check BTC bias first. If BTC down, alt plays are risky.

BTC 4h → ETH 4h

0.80

Strong lead (BTC moves first)

Action: Use BTC 4h as primary trend; ETH follows within 15–30m.

BTC Daily → Alts Daily

0.70

Moderate (same direction, weaker)

Action: Alt daily structure can diverge; check both charts.

Polymarket Odds ↔ BTC Price

0.60 (inverse)

Weak inverse (odds ↑ when fear ↓)

Action: Useful macro context; not a trading signal by itself.

Stock Index Futures → Crypto

0.50

Moderate (macro risk-on/off)

Action: When stocks crash (SPX down 2%), crypto often sells off. Monitor FOMC dates.

Volatility Regime Detection

Your timeframe choice and stop placement should adapt to volatility regime. Use VIX or Average True Range to gauge regime.

Low Vol

VIX <15

Market Condition

Quiet, range-bound, institutional accumulation

Timeframe Choice

4h (tight stops possible)

Stop Type

ATR × 1.5–2.0

Trading Rule

Use tight, logical stops. Small R:R acceptable.

Normal Vol

VIX 15–20

Market Condition

Healthy trending, momentum plays work

Timeframe Choice

1h–4h mix (entry on 1h, confirm on 4h)

Stop Type

ATR × 2.0–2.5

Trading Rule

Standard rules apply. Scalp 5m with 4h confirmation.

High Vol

VIX >20

Market Condition

Whipsaw-prone, larger swings, panic moves

Timeframe Choice

4h only (skip 5m/15m; they lie)

Stop Type

ATR × 2.5–3.0

Trading Rule

Use wider stops. Only take highest-conviction setups. Reduce position size.

Extreme Vol

VIX >30

Market Condition

Panic/euphoria, flash crashes, black swan events

Timeframe Choice

Daily only (wait for calm)

Stop Type

Support/Resistance only (ATR unreliable)

Trading Rule

REDUCE TRADING. Let daily confirm macro direction. Skip intraday.

Alternative: ATR Instead of VIX

If you don't track VIX, use ATR (Average True Range) instead. ATR 50% below its 20-day average = low vol. ATR 50% above = high vol.

Check our Regime Detector tool for automated detection →

Multi-Timeframe Alignment Checklist

Before you enter ANY trade, go through this checklist. If you can't check all boxes, skip the trade.

Pre-Trade Checklist

Macro Context (Highest TF)

  • ▸Weekly: What’s the long-term bias? (Bull/bear/consol?)
  • ▸Daily: Is there a clear trend direction?
  • ▸Daily: Where are major support/resistance zones?

Swing Structure (Mid TF)

  • ▸4h: Is there a trend or consolidation?
  • ▸4h: Does pattern match the matrix (green or yellow)?
  • ▸1h: Does it align with 4h bias?

Entry Confirmation (Lowest TF)

  • ▸15m or 5m: Does entry pattern match matrix (🟢)?
  • ▸5m: Can you define a logical stop below support?
  • ▸Risk/Reward: Is it at least 1:1.5?

Macro Validation

  • ▸BTC: What’s BTC doing on 4h? Align with it.
  • ▸Volatility: Check ATR/VIX. Adjust stops accordingly.
  • ▸Portfolio Heat: Is total risk <5%?

If any check fails: SKIP THE TRADE. No entry is worth violating your checklist. The best trade is the one you don’t take.

Rules of Thumb

Memorize these. They save accounts.

✓ The Three-TF Rule

Always check (at minimum) three timeframes before entering: daily (bias), 4h (structure), 1h (entry). If two are against you, wait.

→ The Cascade Rule

Start highest TF (weekly) and work down (daily → 4h → 1h → 5m). This is your natural progression. Entering on 5m without checking 4h is gambling.

🔄 The Conflict Rule

When timeframes conflict (5m up, 4h down), the higher TF always wins. WAIT for the lower TF to catch up. If it doesn’t within 1–2 hours, the move is dead.

⚡ The Scalp Exception

5m entries are ONLY valid if 4h+ is trending your direction AND price is retesting a key level. Never scalp against the 4h trend, no matter how pretty the 5m pattern looks.

⏱️ The Volatility Rule

High vol (VIX >20)? Skip 5m/15m and use 4h only. Tight stops lie in choppy markets. Wide your stops 50% in high-vol regimes. Lower conviction trades in extreme vol (VIX >30).

Print-Ready Summary Card

ALIGNMENT STRENGTH

All TFs aligned = Highest conviction (take full size) • 2+ TFs aligned = Moderate conviction (70–80%) • 1 TF bullish = Low conviction (skip) • TFs conflicting = Dangerous (wait for higher TF catch-up)

ENTRY CHECKLIST

Check weekly (bias) → daily (trend) → 4h (structure) → 1h (confirmation) → 5m (entry). Define stop BEFORE entry. Validate on 4h before entering on lower TF.

VOLATILITY ADJUSTMENTS

Low vol (VIX <15) = Use 4h, tight stops • Normal vol (15–20) = 1h–4h mix • High vol (>20) = 4h only, wide stops • Extreme (>30) = Daily only, skip trading until calm

KEY CORRELATIONS

BTC → Alts: 0.85+ (follow BTC) • BTC 4h → ETH 4h: 0.80 (BTC leads 15–30m) • BTC Daily → Alts Daily: 0.70 (check both) • SPX → Crypto: 0.50 (macro risk-on/off)

// CONTINUE LEARNING

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