Bitcoin Multiple Time-frame Trading Strategy
Multiple time-frame bitcoin strategy equals using 2 chart time frames to trade bitcoin - a shorter chart time-frame used for trading & a longer chart timeframe used to check the cryptocurrency trend.
Since it is always good to follow the bitcoin trend when bitcoin trading, in Multiple Time Frame Bitcoin Analysis, the longer chart timeframe gives us the direction of the long term cryptocurrency trend.
If the long term bitcoin trend direction supports the direction of the smaller chart time-frame then probability of opening a profitable bitcoin trade is significantly increased. This is because even if you make a mistake the long term bitcoin trend will eventually save you. Also if you trade with the direction of the bitcoin trend, then mostly you will be on the winning side - this is what this Multiple Time-frame Cryptocurrency Analysis is all about.
Remember there is a popular saying by many bitcoin traders that says: "The bitcoin trend is your friend' - never go against the bitcoin trend when trading.
There are four different types of bitcoin traders - all these different types of bitcoin traders use different chart time-frames to trade as illustrated and shown below.
Examples of how each type of bitcoin trader uses multiple time frames bitcoin strategy:
Bitcoin Scalping
Scalpers hold on to their cryptocurrency trades for only a few minutes. Scalping bitcoin trader never holds onto a btcusd trading for more than Ten minutes. With the main aim of making a small amount of pips as profit, 5 pips to 15 pips.
A Scalper using 1 minute bitcoin chart wants to open a buy bitcoin trade, checks 5 minute bitcoin chart, which looks like the one below, since 5 min bitcoin chart show bitcoin trend is moving upward, then decides from this multiple time-frame bitcoin strategy it is okay to open a buy bitcoin trade.
Technical Analysis Using Multiple Timeframes
Multiple Timeframe BTCUSD Analysis Day Bitcoin Trading
Day bitcoin traders hold on to their open cryptocurrency 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.
Bitcoin day trader trading 15 minutes bitcoin chart wants to open a buy bitcoin trade, checks 1 hour bitcoin chart, which looks like the btcusd chart below, since 1 hour bitcoin chart shows bitcoin trend is moving upward, then decides from this multiple time-frame bitcoin strategy it is okay to open a buy bitcoin trade.
Multiple Time-Frame Crypto Analysis Day Crypto Trading - Multiple Crypto Time Frame Analysis
Swing Traders
Swing bitcoin traders hold on to their open cryptocurrency 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 bitcoin chart wants to open a sell bitcoin trade, checks 4 hour bitcoin chart, which looks like the btcusd chart example illustrated below, since 4 hour bitcoin chart shows the bitcoin trend is moving downwards, then decides from this multiple time-frame bitcoin strategy it is okay to open a sell bitcoin trade.
Trading 2 or 3 Time Frames on Crypto Charts - Trading 2 or 3 Timeframes on Crypto Charts
Position BTCUSD Traders
Position bitcoin traders are traders who hold onto their cryptocurrency trades for weeks or months. With the objective of making a large number of pips profit: 300 - 800 pips.
Position bitcoin trader using the daily bitcoin chart wants to open a sell bitcoin trade, checks weekly bitcoin chart, weekly looks like the btcusd chart example illustrated below, since weekly bitcoin chart shows the bitcoin trend is moving downwards, then decides from this multiple time-frame bitcoin strategy it is okay to open a sell bitcoin trade.
Multiple Time Frame Crypto Trading Strategy
Bitcoin Multiple Time Frame Bitcoin Trading Strategy - Using Multiple Bitcoin Timeframes - Bitcoin Multiple Time Frame Trading Strategy - Multiple Bitcoin Time Frame Analysis - Trading 2 or 3 Bitcoin Time Frames on Cryptocurrency Charts - Multiple Time-frame Bitcoin Analysis
