What is Timeframe Continuity?

In trading, one of the most important factors is the timeframe alignment. If you are trading against the high timeframe trends, then the winning ratio of the trading strategy will decrease drastically. So, to get a high winning ratio, we will have to trade in the direction of higher timeframe trends. 

In the strat trading, we align the trend on multiple higher timeframes to get high winning ratio in the strategy. This is an extra confluence to avoid false patterns as we cannot trade each strat pattern in trading. We must trade only high probability strat patterns to keep the trading account profitable. 

I will explain everything about timeframe continuity and examples in this post, so read the full post and take all the steps. 

What is Timeframe Continuity in the strat? 

Timeframe continuity is the process of aligning trends on multiple higher timeframes using a 2-2 continuation pattern and then trading on lower timeframes in the direction of a higher timeframe trend. This will drastically improve the winning ratio of the strat trading strategy. 

For example, suppose a 2-2 bullish continuation pattern forms on all the selected higher timeframes. In that case, we will trade every bullish strat pattern on a lower timeframe, like a 2-1-2 bullish continuation. 

What are the higher time frames in the timeframe continuity? 

The timeframes above your trading or current chart are higher. For example, if you want to trade in 15 15-minute timeframes, then 30M, 45M, or 1H are all higher timeframes with respect to 15M. 

Higher timeframes differ for different trading styles like scalping, swing, or day trading. 

Let me draw a simple table to give you an idea about higher timeframes that you should select to identify the timeframe continuity in strat patterns.

We can trade accurately by using these higher timeframes in the timeframe continuity. 

How to trade using Timeframe Continuity?

I will explain timeframe continuity with a swing trading example in XAUUSD. 

As we will be trading on the 1H timeframe, then we will first verify the timeframe continuity on the daily, weekly, and monthly charts.

On the monthly chart, you can see the 2-2 bullish continuation. A 2-2 continuation starts just after the break of the high of the previous candlestick.

Now, let’s switch to the weekly chart; here, you can also see a 2-2 bullish continuation formation. Now, at this point, weekly and monthly charts align in the same bullish direction.

Next is the daily timeframe; we can also see a bullish trend continuation in the form of a 2-2 pattern. At this time, complete timeframe continuity is bullish and we will have to trade each bullish strat actionable pattern on the H1 or 4H timeframe. 

In the 1H timeframe, you can see the formation of bullish strat actionable patterns, mostly winning.

So, by aligning higher timeframes, we have increased the winning probability. 

When to not trade using strat patterns?

In the strat trading, if the timeframe continuity is bullish, we will trade bullish actionable patterns only; on the other hand, if the timeframe continuity is bearish, we will trade only bearish actionable patterns.

If we see any consolidation or formation of scenario 1 on any higher timeframe, then we will always avoid trading in that financial asset. 

Scenario 1 is the symbol of consolidation in the strat, and it shows that the market needs a clear direction; if we trade during this market situation, we will have to face many losses in the strat trading. 

So, always avoid scenario 1 in the continuity timeframe or if there’s any trend conflict.

The bottom line

Full timeframe continuity is the most important concept of strat patterns trading. All traders should backtest this concept as much as possible to get a firm grip on it.

You may find it confusing initially, but it’s very simple. We have also built tools to help you do timeframe continuity analysis easily using a single timeframe.

If you have any questions below, please comment below. I will surely answer all of your questions.

Thanks