A trend on higher time-frames has had more time to develop, which means that it will take a bigger market move for the pair to change course. Support & resistance, supply & demand zones are more significant and valid on higher time-frames. It is possible to trade a double top on the 1 hour chart, make a profit, & close the trade. After market price has completed the 1 hour double top,it will reverse and start forming a double top confirmation on the 4 hour time-frame. This process continues until confirmations have formed on all time-frames, then market price moves to a new and different price range to begin the process all over again. Most traders often make their trading decisions based exclusively on a single time-frame. They spend all their energies in analysing the technicals on their trading time-frame without giving much thought to what might be happening in bigger time-frames. Market direction is clearest on bigger time-frames like the daily & weekly. a single time-frame can work out fine in some cases, however, a more robust approach would entail looking at several time-frames in order to get a better handle on the potential viability of a trade set-up. For the average trader multiple time-frame analysis can seem a bit overwhelming and confusing.
One major reason that traders avoid multi time-frame analysis is due to the conflicting information that sometimes results from this approach. This confusion often causes many traders to suffer from "Analysis Paralysis". Expand your understanding by repeatedly looking at multiple time-frames, you will eventually get used to analysing that way. It is okay to use a single time-frame for analysis, but don't let that be you!
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