Multiple Timeframe Trading Strategy Indices

Multiple timeframe indices analysis equals using 2 indices chart timeframes to trade indices - a shorter indices chart time-frame used for trading & a longer indices chart 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 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 indices chart 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 chart timeframes to trade as shown below.

Examples of how each type of Indices trader uses multiple Stock Indices chart Time-frames 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 indices technical analysis it is okay to open a buy indices trade.

Multi Time-frame Scalping Stock Indices - Multiple Time-frame Trading Strategy Indices

Multi Time Frame Day Trading Indices

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 indices technical analysis it is okay to open a buy indices trade.

Multi Time-frame Day Trading Stock Indices - Multi Time Frame Intraday Trading Stock Indices - Multiple Time-frame Trading Strategy Indices

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 indices technical analysis it is okay to open a sell indices trade.

Multi Time-frame Swing Trading Stock Indices - Multi Time Frame Swing Trading Stock Indices - Multiple Time-frame Trading Strategy Indices

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 indices technical analysis it is okay to open a sell indices trade.

Multi Time-frame Positional Trading Stock Indices - Multiple Time-frame Trading Strategy Indices

How to Define A Stock Indices Trend

Using a stock indices trading system that has 3 indices technical 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