How do you perform multi-timeframe supply and demand analysis?

To conduct a multi-timeframe supply and demand analysis, follow these steps:
Identify Key Timeframes: First, identify which timeframes will provide the most comprehensive view of market trends and conditions. Typically, a combination of long, intermediate, and short-term charts—such as monthly, weekly, and daily—are used. Depending on your trading strategy, you might also consider hourly charts for more granular insights.
Analyze Long-Term Trends: Start with the highest timeframe to understand the broader market context. Look for major supply and demand zones where price previously reversed direction or consolidated. These levels often serve as critical macro support and resistance points.
Evaluate Intermediate Trends: Move down to an intermediate timeframe, such as the weekly chart, to refine your analysis. Here, you can spot more detailed supply and demand zones within the broader zones identified on the long-term chart. This will help you to gain perspective on ongoing trends and potential reversals.
Focus on Short-Term Trends: Finally, analyze the short-term chart to identify immediate supply and demand levels that could affect imminent trading decisions. This includes looking for recent price action setups or confirmations that align with the broader context from larger timeframes.
Align with Price Action: Observe how price interacts with these identified supply and demand zones across all timeframes. Look for patterns or candlestick formations that indicate potential breakouts, reversals, or continuations.
Integrate Additional Indicators: While price action and supply-demand zones are crucial, consider incorporating other technical indicators like moving averages or RSI to complement your analysis and provide additional confirmation.
Formulate Trading Decisions: Use the insights gained from this comprehensive analysis to inform your trading strategy. Prioritize trades that align with the confluence of signals from multiple timeframes, which generally offer higher probability scenarios.

By integrating these steps, a trader can develop a nuanced understanding of market dynamics, optimizing entry and exit points based on multi-timeframe supply and demand analysis.