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Previous articleUntil the previous article, we delivered a basic course on technical analysis over several installments, but

From this time,“MTF Analysis (Multi-Time Frame Analysis)as an introduction, I plan to write a series of three articles!

In this first installment, we will cover the concept that is crucial when learning MTF analysis, namely “fractal”

MTF analysis may be a topic that takes time to fully understand, but it is also a powerful tool, so let’s study it thoroughly!

What is MT F Analysis (Multi-Time Frame Analysis)?

First, let me briefly explainwhat MT F analysisis all about.

“It’s better to pay attention to the higher and lower time frames!”

Those learning technical analysis may have heard something like this above.

Analyzing by considering multiple time frames—the higher and lower time frames—is what is calledMTF (Multi-Time Frame) analysisas a method of analysis!

Before diving into concrete MTF analysis, let’s first look at the concept you should know: “fractal structure”

What is fractal structure?

Have you ever heard offractal structure?

A fractal is defined as a self-similar shape with fractional dimensions, a term coined by Benoit Mandelbrot.The word fractal itself was Mandelbrot’s coinage, but its root is Latin fractus, and in English it carries meanings like fraction, fragment, part, and partial.

A fractal-bearing structure has the characteristic that a part of the structure resembles the whole (self-similarity or recursion). This is called self-similarity or recursion.

For example, clouds in the sky, plants, snow crystals, fjord-like coastlines, and the double helix of DNA—all in nature—many of which have fractal structures.

This means that if you zoom in on a part, you’ll see a similar shape.

Fractal> Before the concept of fractals existed, these random, irregular shapes that appeared spontaneously were not given deep meaning (they were called accidental forms or automatic patterns).

However, with the emergence of the fractal concept, these unpredictable phenomena could be given objectivity.

Even in art and design, we could see many complex, random shapes, but artists expressed them unconsciously.

Incidentally, self-similarity and self-retrocausality can also be seen in mandalas said to represent the universe or in Taijitu (yin-yang symbol).

What is the fractal nature of the market?

“I understand fractals are amazing, but aren’t we talking about trading?”

If you’re thinking that,

the reason I’m bringing this up is...

That’s right! The market also has fractal properties!

Please look at the charts below.

They look somewhat similar, don’t they?

In fact, these are a daily chart from the top, then 4-hour, then 1-hour!

In other words, this is what it means.

How about now?

Even though the time frames differ, when you downsample to the lower time frame and zoom in, you see a similar scene, right?

In other words,the market also has self-similarity.

This is the fractal nature of the market!

When examining past charts, you’ll often find similar price movements across different time frames.

In other words,what happens on higher time frames can also occur on lower time frames, and vice versa.

This is what gives rise to the reproducibility of technical analysis.

Knowing the fractal nature of the market is very important when performing MTF analysis!

Well, let’s leave it at that for now!

In the next installments, we will delve deeper into actual MTF analysis, so in the meantime, try to look at your own charts and find scenes similar to this on each time frameand exploreto experience the market’s fractal nature!

By the way, figures with fractal structures include the Koch curve, Sierpinski gasket, Cantor set, so it might be interesting to look them up!

Next article is here ↓

What are the roles of each time frame in Multi-Time Frame Analysis? MT F Analysis Intro Part #2

By the way, in the e-book I wrote (see the link below) there is a lot of content to help youdeepen your understanding of MTF analysis and trade at a higher leveltraining to master it!

Practical methods to master MTF analysis, setups (entry patterns), triggers, as well as how to cut losses and take profits, all supported by rationale and underlying thinking, thoroughly explained

Details of the author’s MTF trading method are here ↓

→The essence of MTF Multi-Time Frame Analysis

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