Indices Position Trading Strategy

Example of Indices Trading Position Trade Indices Chart Time Frames

Position Traders

These group of indices trading are the investors that hold on to their trades for weeks or months. With the objective of making a large number of pips, 300 - 1,000 pips.

Position indices trader using the daily indices chart timeframe wants to go short, checks weekly indices chart timeframe, weekly indices chart timeframe looks like the one below, since weekly stock indices chart shows the indices trend is going down, then decides from this technical analysis it's okay to sell.

Example of Indices Trading Position Trade Indices Chart Time Frames

Indices Trading Position Traders using technical analysis use stock indices charts to try and attempt to predict the movement of stock indices price on the stock indices charts.

Indices Trading Position traders will sometimes use two or more indices chart timeframes so as to determine the long term indices trend and the short term indices trend.

How to Define A Indices Price Indices Trend for Position Trading

Using a stock indices trading system that has 3 indicators - Moving Average Crossover System, RSI and MACD and using simple rules to define the indices trend. The trading rules are:

Upward Indices Trend

Both MAs Moving Up

RSI above 50

MACD Above Centerline

Downward Indices Trend

Both MAs Moving Down

RSI below 50

MACD Below Centerline

Multiple indices charts time frames analysis equals using 2 chart timeframes to trade stock indices trading - a shorter indices chart timeframe used for trading and a longer chart timeframe to check the indices trend - the chart timeframes that you choose for trading stock indices price action with will depend on the type of trader you are: for Position Traders the chart timeframes used for trading will be an example of daily indices chart timeframe and weekly indices chart timeframe.

Since it is always good to follow the indices trend when indices trading Position Trading, in Multiple Chart Time Frame Analysis, the longer weekly indices chart timeframe gives us the direction of the long-term indices trend when Position trading using the daily Indices Chart Time Frame.