Multiple Timeframe Bitcoin Analysis in Bitcoin Trading
Multiple time-frame bitcoin analysis equals using 2 bitcoin chart time-frames to trade bitcoin - a shorter bitcoin chart timeframe used for trading & a longer bitcoin chart time frame used to check cryptocurrency trend.
Since it's always good to follow the bitcoin trend when bitcoin trading, in Multiple Time Frame Bitcoin Analysis, the longer bitcoin 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 bitcoin chart timeframe then probability of opening a profitable bitcoin trade is greatly 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 bitcoin trend, then mostly you will be on the winning side - this is what this Multiple Timeframe 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 bitcoin trading chart time-frames to trade as illustrated & shown below.
Examples of how each type of Bitcoin trader uses multiple BTCUSD chart Time Frames 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 trade for more than 10 minutes. With the objective of making a small amount of pips as profit, 5 pips to 15 pips.
A Scalper using 1 minute bitcoin chart wants to go long, checks 5 minutes bitcoin chart, which looks like the one below, since 5 min show bitcoin trend is going up, then decides from this technical analysis it's okay to buy.
Best Chart Timeframe for Scalping Crypto
Best Chart Timeframe for Day Trading Bitcoin Crypto
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.
Cryptocurrency day trader trading 15 minutes btcusd chart wants to go long, checks 1 hour btcusd chart, which looks like the one below, since 1 hour shows bitcoin trend is going up, then decides from this technical analysis it's okay to buy
Best Chart Timeframe for Day Trading Crypto - Best Chart Timeframe for Intraday Trading Crypto
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 go short, checks 4 hour bitcoin chart, which looks like the cryptocurrency trading example illustrated below, since 4 hour shows the bitcoin trend is going down, then decides from this technical analysis it's okay to sell.
Best Chart Timeframe for Swing Trading Crypto - Best Chart Timeframe for Swing Trading Crypto
Position Bitcoin Traders
Position bitcoin traders are traders that 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 go short, checks weekly bitcoin chart, weekly looks like the one below, since weekly shows the bitcoin trend is going down, then decides from this technical analysis it's okay to sell.
Best Chart Timeframe for Positional Trading Crypto
How to Define A BTCUSD Trend
Using a cryptocurrency trading system that has 3 bitcoin trading 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
