Multiple Time-frame Analysis PDF
Multiple time-frame bitcoin analysis 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 Timeframes Bitcoin analysis strategy:
BTCUSD Scalpers
Scalpers hold on to their cryptocurrency trades for only a few minutes. Scalper 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 min cryptocurrency chart wants to go long, checks 5 minute crypto chart, which looks like the one below, since 5 min cryptocurrency chart show bitcoin trend is heading upwards, then decides from this cryptocurrency analysis it is ok to open a buy bitcoin trade.
Multiple Time-frame Chart Technical Indicator
Multiple Time-frame 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 min cryptocurrency chart wants to go long, checks 1 hour crypto chart, which looks like the cryptocurrency chart below, since 1H cryptocurrency chart shows bitcoin trend is heading upwards, then decides from this cryptocurrency analysis it is ok to open a buy bitcoin trade.
Multiple Time-Frame Crypto Analysis Day Crypto Trading - Multiple Time Frame Trading System
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 1H cryptocurrency chart wants to go short, checks 4 hour crypto chart, which looks like the cryptocurrency chart example illustrated below, since 4H cryptocurrency chart shows the bitcoin trend is moving downwards, then decides from this cryptocurrency analysis it is ok to open a sell bitcoin trade.
Multiple Timeframes on Crypto Chart MT4 - Multiple Timeframes on Crypto Chart MetaTrader 4
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 cryptocurrency chart wants to go short, checks weekly crypto chart, weekly looks like the cryptocurrency chart example illustrated below, since weekly cryptocurrency chart shows the bitcoin trend is moving downwards, then decides from this cryptocurrency analysis it is ok to open a sell bitcoin trade.
Multiple Time-frames In Chart Trading
How to Define A Bitcoin Trend
Using a cryptocurrency trading system that has 3 cryptocurrency technical indicators - Moving Averages Crossover System, RSI Cryptocurrency Indicator & MACD Cryptocurrency Indicator - & uses simple rules to define the cryptocurrency trend. The rules are:
Upward BTCUSD Trend
Both Moving Averages Moving Up
RSI Bitcoin Indicator Above 50
MACD Bitcoin Indicator Above Centerline
Downward Bitcoin Trend
Both Moving Averages Moving Down
RSI Bitcoin Indicator Below 50
MACD Bitcoin Indicator Below Centerline
