Multi-Timeframe Analysis for Better Trading Decisions in NEPSE

In Technical Analysis, Multi-Timeframe Analysis (MTA) is a powerful approach that allows traders to see the bigger picture of the market before making any trading decision. Instead of relying on a single chart, traders analyze multiple timeframes — such as the daily, 4-hour, and 1-hour — to understand the market’s structure, momentum, and possible reversal points. In the Nepal Stock Exchange (NEPSE), where market movements can often appear random to retail traders, multi-timeframe analysis gives clarity by aligning short-term entries with long-term trends.

The idea behind MTA is simple: the higher timeframe shows the overall trend and key zones, while the lower timeframe provides the precise entry and exit signals. For instance, a weekly or daily chart helps identify the main trend direction and institutional supply-demand zones, whereas the 4-hour or 1-hour chart refines the entry timing with price action confirmation. By combining both perspectives, traders avoid trading against the dominant flow and instead trade in harmony with the market’s real momentum. This alignment increases the probability of success and reduces false signals that often trap impatient traders.

Using multiple timeframes also allows traders to understand market context. A setup that looks bullish on a 1-hour chart may actually be a minor pullback within a larger downtrend visible on the daily chart. Similarly, a small rejection candle on a lower timeframe could mark the start of a major reversal seen on a higher timeframe. Hence, MTA prevents traders from overtrading and helps them make data-backed, structured decisions.

Sandeep Kumar Chaudhary, Nepal’s leading Technical Analyst and founder of NepseTrading Elite, emphasizes that “Multi-timeframe analysis turns chaos into clarity. It helps you trade with structure, not emotion.” With 15+ years of banking and trading experience, and professional training from Singapore and India, he teaches Nepali traders how to build a top-down analysis framework — starting from higher timeframes (weekly/daily) to identify bias, and then narrowing down to lower timeframes (4H/1H/15M) for confirmation. His method combines Price Action, Smart Money Concepts (SMC), and ICT methodology to help traders synchronize multiple layers of market information before executing any trade.