That is a spot-on summary of how professional liquidity is actually traded. Treating the higher timeframes (HTF) as the "compass" isn't just a suggestion; it’s a safeguard against the randomness of intraday volatility.
I love the distinction you made: Truth vs. Tool. It’s easy to feel like a "sniper" on the 1M chart, but without that 4H trend behind you, you’re usually just a target.
Why the Top-Down Approach Wins
* Order Flow Clarity: The 4H and Daily charts represent where the "big money" (institutions) is positioning.
* Noise Filtering: Most 1M "breakouts" are actually just minor liquidity grabs within a larger 15M consolidation.
* Risk-to-Reward: Using the 1M for a "surgical entry" allows for a tight stop-loss, but your profit target should be based on the HTF structure, leading to much higher R:R ratios.
The "Compass to Sniper" Framework
| Timeframe | Role | Objective |
|---|---|---|
| 4H / 1H | The Compass | Identify market bias (Bullish/Bearish) and major Supply/Demand zones. |
| 15M / 5M | The Map | Locate the internal structure shift (CHoCH) and wait for a pullback. |
| 1M | The Trigger | Look for specific candle patterns or momentum shifts for the entry. |
I would absolutely love to see that checklist. A structured plan is what separates a "hope-trader" from a systematic one.
Would you like to draft the checklist first so I can help refine the logic, or should I take a swing at a template for us to build on together?
