Multiple Timeframe Analysis PDF
Multiple timeframe indices analysis equals using 2 chart time frames to trade indices - a shorter chart timeframe used for trading and a longer chart time frame used to check the stock indices trend.
Since it is always good to follow the indices trend when indices trading, in Multiple Chart Timeframe Indices Analysis, the longer chart time-frame gives us the direction of the long term stock indices trend.
If the long term indices trend direction supports the direction of the smaller chart time-frame then the probability of opening a profitable indices trade is significantly increased. This is because even if you make a mistake the long term indices 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 indices trend is your friend' - never go against the indices trend when trading.
There are four different types of indices traders - all these different types of indices traders use different chart time frames to trade as displayed below.
Examples of how each type of Stock Indices trader uses multiple Timeframes Stock Indices analysis strategy:
Indices Scalpers
Scalpers hold on to their stock indices trades for only a few minutes. The scalper indices trader never holds on to a index 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 stock indices chart wants to go long, checks 5 minutes stock indices chart, which looks like the one below, since 5 minute stock indices chart show indices trend is moving up, then decides from this stock indices trading analysis it's ok to open a buy indices trade.
Multiple Time Frame Chart Indicator - Multiple Time Frame Analysis Guide
Multiple Timeframe Indices Analysis Day Stock Indices Trading
Day indices traders hold on to their open stock indices 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.
Indices day trader trading 15 minute stock indices chart wants to go long, checks 1 hour stock indices chart, which looks like the stock indices chart below, since 1 hour stock indices chart shows indices trend is moving up, then decides from this stock indices trading analysis it's ok to open a buy indices trade.
Multiple Time-Frame System - Multiple Timeframe Analysis Guide
Swing Traders
Swing indices traders hold on to their open stock indices 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 hour stock indices chart wants to go short, checks 4 hour stock indices chart, which looks like the stock indices chart examples explained below, since 4 hour stock indices chart shows the indices trend is heading down, then decides from this stock indices trading analysis it's ok to open a sell indices trade.
Multiple Timeframes on Stock Indices Chart MetaTrader 4 - Multiple Timeframe Analysis Guide
Position Traders
Position indices traders are traders who hold on to their stock indices trades for weeks or months. With the aim of making a large number of pips profit: 300 - 800 pips.
Position indices trader using the daily stock indices chart wants to go short, checks weekly stock indices chart, weekly looks like the stock indices chart examples explained below, since weekly stock indices chart shows the indices trend is heading down, then decides from this stock indices trading analysis it's ok to open a sell indices trade.
Multiple Time Frames in Chart Trading - Multiple Time Frame Analysis Guide
How to Define A Stock Indices Trend
Using a stock indices trading system that has 3 stock indices indicators - Moving Averages Crossover System, RSI Stock Indices Indicator and MACD Stock Indices Indicator - and uses simple rules to define the stock indices trend. The rules are:
Upwards Indices Trend
Both Moving Averages Moving Up
RSI Indices Indicator Above 50
MACD Indices Indicator Above Centerline
Downwards Stock Indices Trend
Both Moving Averages Moving Down
RSI Indices Indicator Below 50
MACD Indices Indicator Below Centerline
