Multiple Timeframe Indices Analysis PDF
Multiple timeframe indices analysis equals using 2 indices time frames to trade indices - a shorter indices time frame used for trading & a longer indices time frame used to check the stock indices trend.
Since it's always good to follow the indices trend when indices trading, in Multiple Chart Timeframe Indices Analysis, the longer indices 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 indices time frame then 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 direction of the trend, then mostly you'll be on the winning side - this is what this Multiple Time Frame Stock Indices Analysis is all about.
Remember there is 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 indices time frames to trade as shown below.
Examples of how each type of Indices trader uses multiple Timeframes Indices analysis strategy:
Stock Indices Scalpers
Scalpers hold on to their stock indices trades for only a few minutes. Scalper indices trader never holds on to a index trade for more than ten minutes. With the objective of making small amount of pips profit: 5 to 15 pips.
A Scalper using 1 min chart wants to go long, checks 5 minutes chart, which looks like the one below, since 5 minute chart show indices trend is moving up, then decides from this stock indices analysis it's ok to open a buy indices trade.
Multi Time-frame Indices Trading Scalping Stock Indices - Multiple Timeframe Indices Analysis Guide
Multi Time Frame Indices Trading Day Trading
Day indices traders hold on to their open stock indices trades for a few hours but not more than a day. With the objective of making quite a number of pips profit: 30 - 60 pips.
Indices day trader trading 15 min chart wants to go long, checks 1 hour indices chart, which looks like the stock indices chart below, since 1 hour indices chart shows indices trend is moving up, then decides from this stock indices analysis it's ok to open a buy indices trade.
Multi Time-frame Indices Trading Intraday Indices Trading - Multiple Timeframe Indices Analysis Guide
Swing Traders
Swing indices traders hold on to their open stock indices trades for a few days to a week. With the objective of making a large number of pips 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 indices chart examples illustrated below, since 4 hour indices chart shows the indices trend is heading down, then decides from this stock indices analysis it's ok to open a sell indices trade.
Multi Time-frame Swing Indices Trading - Multiple Timeframe Indices Analysis Guide
Position Traders
Position indices traders are traders that hold on to their stock indices trades for weeks or months. With the objective of making a large number of pips profit: 300 - 800 pips.
Position indices trader using daily trading chart wants to go short, checks the weekly indices chart, weekly looks like the stock indices chart examples explained below, since weekly indices chart shows the indices trend is heading down, then decides from this stock indices analysis it's ok to open a sell indices trade.
Multi Time-frame Indices Trading Positional Indices Trading - Multiple Timeframe Indices 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 & MACD Stock Indices Indicator - & 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
