jitasb,
Before I answer your question it's very important that you understand exactly why we use Multi Time Frame Analysis (MLT). MLT allows you to identify and take advantage of certain inefficiencies in the market. Inefficiencies become present when lower TF's start to diverge in direction to the higher TF's. Traders who are solely trading from a 1,3 or 5 min chart (which are the majority of day traders and one of the reasons why they lose 95% of the time) are our pray because we have the advantage of knowing the direction of the higher TF's. Knowing the direction of the higher TF's is critical because ultimately the lower TF's are going to be pulled in the direction of the higher TF's the majority of the time.
So Joe the day trader might see the market trending up in a 1min and decide to buy, we will probably see all lower TF's OB and all higher TF's pointing down and take the other side of Joe's trade. We obviously have an edge over Joe because we are taking adavantage of a powerful tendancy in the markets; trends that run counter to the next higher timeframe tend to be abortive.
So to answer your question, yes, you would be looking for the lower TF's to become OB because you have all higher TF's pointing to the downside. If the market was trending up all day and you had all higher TF's pointing up, you would generally be looking for the lower TF's to become OS before entering a trade.
Naeem
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