Multiple Time-frame Indices Analysis PDF

Multiple time-frame indices analysis equals using 2 timeframes to trade indices - a shorter indices time-frame used for trading & a longer indices time-frame used to check the trend.

Since it's always good to follow the market trend when indices trading, in Multiple Chart Time Frame Indices Analysis, the longer indices time-frame gives and provides us the direction of the long term trend.

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

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

There are 4 different types of traders - all these various types of traders use different indices time-frames to trade as shown below.

Explanation examples of how each type of Indices trader uses multiple Chart Time-frames Indices analysis strategy:

Stock Indices Scalpers

Scalpers hold onto their stock trade transactions only for a couple of minutes. Scalper trader never holds on to a index trade for more than ten minutes. With main objective of earning a small number of pips profit: 5 to 15 pips.

A Scalper using 1 minute chart time frame wants to go long, checks five minutes chart, that looks like the one below, since 5 minutes trading chart show trend is moving up, then decides from the stock analysis it is okay to open a buy trade.

Multi Time-frame Indices Scalping Indices - Multi Time-frame Index Scalping Index

Multi Time-frame Indices Scalping Index - Multiple Time-frame Indices Analysis Tutorial

Multi Time-frame Indices Day Trading

Day traders hold onto their open stocks trade positions for a couple of hours but not more than a day. With objective of earning quite a number of pips profit: 30 - 60 pips.

Day trader trading 15 minute chart time frame wants to go long, checks 1H chart, that looks like the chart below, since 1H chart indicates trend is moving up, then decides from the stock analysis it is okay to open a buy trade.

Multi Time-frame Indices Intraday Indices - Multi Time-frame Index Day Trading

Multi Time-frame Indices Intraday Indices - Multiple Time-frame Indices Analysis Tutorial

Swing Traders

Swing traders hold onto their open stocks trade positions for a couple of days to a week. With objective of earning a large number of pips profit: 100 - 250 pips.

Swing trader using 1H chart time frame wants to open short, checks 4 hour chart, that resembles the chart examples illustrated below, since 4 hour chart shows the trend is heading down, then decides from the stock analysis it's ok to open a sell indices trade.

Multi Time-frame Swing Indices - Multiple Time-frame Index Analysis PDF

Multi Time-frame Swing Indices - Multiple Time-frame Indices Analysis Tutorial

Position Traders

Position traders are traders that hold onto their stock trade transactions for weeks or months. With objective of earning a large number of pips profit: 300 - 800 pips.

Position trader using daily chart time frame wants to open short, checks the weekly chart, week looks like the chart illustrations explained below, since weekly chart shows the trend is heading down, then decides from the stock analysis it's ok to open a sell indices trade.

Multi Time-frame Indices Positional Indices - Multiple Time-frame Stock Analysis PDF

Multi Time-frame Indices Positional Indices - Multiple Time-frame Indices Analysis Tutorial

How to Define A Trend

Using a stock system that has Three indicators - MAs Cross-Over Method, RSI Indicator & MACD Indicator - and uses simple trading rules to define the market trend. The Rules Are:

Upwards Indices Trend

Both MAs Moving Up

RSI Indicator Above 50

MACD Indicator Above Centerline

Down-wards Stock Trend

Both MAs Moving Down

RSI Indicator Below 50

MACD Indicator Below Center-Line

Study More Lessons and Tutorials & Topics:

Trade Stock Indices