Indices Multiple Timeframe Strategy

Multiple timeframe indices strategy equals using 2 chart timeframes to trade indices - a shorter chart timeframe used for trading and a longer chart timeframe used to check the trend.

Since it's always good to follow the trend when indices trading, in Multiple Chart Time Frame Indices Analysis, the longer chart timeframe gives us the direction of the long term trend.

If the long term trend direction supports the direction of the smaller chart timeframe then the probability of opening a profitable trade is significantly increased. This is because even if you make a mistake the long term trend will eventually save you. Also if you trade with direction of the trend, then mostly you'll be on the winning side - this is what this Multiple Timeframe Stock Indices Analysis is all about.

Remember there's a popular saying by many investors & traders that says: 'The trend is your friend' - never go against the trend when trading.

There are four different types of traders - all these different types of traders use different chart timeframes to trade as displayed below.

Examples of how each type of trader uses multiple time frames strategy:

Indices Scalping

Scalpers hold on to their stock trades for only a few minutes. Scalping trader never holds on to a trade for more than ten minutes. With the aim of making small amount of pips profit: 5 to 15 pips.

A Scalper using 1 min chart wants to open a buy trade, checks 5 minute chart, which looks like the one below, since 5 minute chart show trend is heading upward, then decides from this multiple timeframe indices strategy it's okay to open a buy trade.

Technical Analysis Using Multiple Timeframes - Multiple Timeframe Strategy

Multiple Time Frame Indices Analysis Day Trading

Day traders hold on to their open stock trades for a few hours but not more than a day. With the aim of making quite a number of pips profit: 30 - 60 pips.

day trader trading 15 minute chart wants to open a buy trade, checks 1 hour chart, which looks like the chart below, since 1 hour chart shows trend is heading upward, then decides from this multiple timeframe indices strategy it's okay to open a buy trade.

Multiple Indices Time Frame Analysis - Multiple Timeframe Strategy

Swing Traders

Swing traders hold on to their open stock trades for a few days to a week. With the aim of making a large number of pips profit: 100 - 250 pips.

Swing trader using 1 H chart wants to open a sell trade, checks 4 hour chart, which looks like the chart examples explained below, since 4 hour chart shows the trend is moving down, then decides from this multiple timeframe trading strategy it's okay to open a sell trade.

Trading 2 or 3 Time Frames on Charts - Multiple Timeframe Strategy

Position Traders

Position traders are traders who hold on to their stock trades for weeks or months. With the aim of making a large number of pips profit: 300 - 800 pips.

Position trader using the daily chart wants to open a sell trade, checks weekly chart, weekly looks like the chart examples explained below, since weekly chart shows the trend is moving down, then decides from this multiple timeframe trading strategy it's okay to open a sell trade.

Multiple Time Frame Indices Strategy - Multiple Timeframe Strategy

Indices Multiple Time Frame Indices Strategy - Technical Analysis Using Multiple Indices Time Frames - Multiple Time Frame Strategy - Multiple Indices Time Frame Analysis - Trading 2 or 3 Timeframes on Charts - Multiple Timeframe Indices Analysis