Multiple Timeframe Indices Analysis PDF

Multiple time frame indices analysis equals using 2 time frames 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 Timeframe Indices Analysis, the longer indices time frame gives 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 will eventually 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 best 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.

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

Stock Indices Scalpers

Scalpers hold onto their stock trades 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 position.

Multi Time Frame Indices Scalping Indices - Multi Time Frame Index Scalping Index

Multi Time Frame Indices Scalping Stock Indices - Multiple Timeframe Indices Analysis Tutorial

Multi Time Frame Indices Day Trading

Day traders hold onto their open stocks trades 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 1 hour chart, that looks like the chart below, since 1 hour chart shows trend is moving up, then decides from the stock analysis it is okay to open a buy trade position.

Multi Timeframe Indices Intraday Indices - Multi Timeframe Stock Indices Day Trading

Multi Time Frame Indices Intraday Indices - Multiple Timeframe Indices Analysis Tutorial

Swing Traders

Swing traders hold onto their open stocks trades 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 looks like 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 stock indices trade.

Multi Time Frame Swing Indices - Multiple Timeframe Index Analysis PDF

Multi Time Frame Swing Indices - Multiple Timeframe Indices Analysis Tutorial

Position Traders

Position traders are traders that hold onto their stock trades 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 resembles the chart examples explained below, since weekly chart shows the trend is heading down, then decides from the stock analysis it's ok to open a sell stock indices trade.

Multi Timeframe Indices Positional Indices - Multiple Timeframe Stock Analysis PDF

Multi Time Frame Indices Positional Indices - Multiple Timeframe Indices Analysis Tutorial

How to Define A Trend

Using a stock system that has Three indicators - MAs Cross Over System, RSI Indicator & MACD Indicator - and uses simple 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

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