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Multiple Time Frame Indices Analysis In Indices Trading

Multiple time frame indices analysis equals using 2 indices chart time frames to trade indices - a shorter indices chart time frame used for trading and a longer indices chart time frame used to check the stock indexes trend.


Since it is always good to follow the indices trend when indices trading, in Multiple Chart Time Frame Indices Analysis, the longer indices chart time frame gives us the direction of the long term stock indexes trend.


If the long term indices trend direction supports the direction of the smaller indices chart time frame then the probability of opening a profitable indices trade is greatly increased. This is because even if you make a mistake the long term indices trend will eventually save you. Also if you trade with the direction of the indices trend, then mostly you will be on the winning side - this is what this Multiple Time Frame Stock Indexes Analysis is all about.


Remember there is a popular saying by many indices 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 indices chart time frames to trade as shown below.


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


Indices Scalpers

Scalpers hold on to their stock indexes trades for only a few minutes. The scalper indices trader never holds on to a indices trade for more than ten minutes. With the objective of making a small amount of pips, 5 - 15 pips.


A Scalper using 1 minute indices chart wants to go long, checks 5 minute indices chart, which looks like the one below, since 5 min show indices trend is going up, then decides from this technical analysis it's okay to buy.

Best Time Frame for Scalping Indices

Best Time Frame for Scalping Stock Indexes - Multiple Time Frame Indices Analysis In Indices Trading


Best Time Frame for Day Trading Indices

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


Stock Indexes day trader trading 15 minute stock indexes chart wants to go long, checks 1 hour stock indexes chart, which looks like the one below, since 1 hour shows indices trend is going up, then decides from this technical analysis it's okay to buy

Best Time Frame for Intraday Trading Indices


Best Time Frame for Intraday Trading Stock Indexes - Multiple Time Frame Indices Analysis In Indices Trading

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Swing Traders

Swing indices traders hold on to their open stock indexes trades for a few days to a week. With the objective of making a large number of pips in profit, 100 - 250 pips.


Swing trader using 1 hour indices chart wants to go short, checks 4 hour indices chart, which looks like the stock indexes trading example explained and illustrated below, since 4 hour shows the indices trend is going down, then decides from this technical analysis it's okay to sell.

Best Time Frame for Swing Trading Indices


Best Time Frame for Swing Trading Stock Indexes - Multiple Time Frame Indices Analysis In Indices Trading


Position Indices Traders

Position indices traders are traders that hold on to their stock indexes trades for weeks or months. With the objective of making a large number of pips in profit, 300 - 800 pips.


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

Best Time Frame for Positional Trading Indices

Best Time Frame for Positional Trading Stock Indexes - Multiple Time Frame Indices Analysis In Indices Trading


How To Define A Indices Trend

Using a stock indexes trading system that has 3 indices technical indicators - Moving Averages Crossover System, RSI Stock Indexes Indicator and MACD Stock Indexes Indicator - and uses simple rules to define the stock indexes trend. The rules are:


Upward Indices Trend


Both Moving Averages Moving Up

RSI Indices Indicator Above 50

MACD Indices Indicator Above Centerline


Downward Indices Trend


Both Moving Averages Moving Down

RSI Indices Indicator Below 50

MACD Indices Indicator Below Centerline

 

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