A higher timeframe can describe context while a lower timeframe defines an entry. More timeframes do not necessarily supply more information because they aggregate the same trades. Contradictions are normal: a small pullback can exist inside a larger uptrend.
Write which timeframe has priority and when its information becomes available. A daily candle’s final close is unknown halfway through the day. Backtesting an intraday entry with that final close introduces look-ahead bias.
Worked example
If the rule uses yesterday’s daily close for trend and a completed hourly candle for entry, both are known at the next hourly decision. Today’s final daily close is not.
Check your understanding
Why can using the completed daily high in a morning entry rule be misleading?
Show explanation
The final high may occur later. The strategy would be using information it did not have at the decision time.
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