Multiple Timeframe Bitcoin Analysis PDF
Multiple time-frame bitcoin analysis equals using 2 bitcoin time frames to trade bitcoin - a shorter bitcoin time frame used for trading & a longer bitcoin time frame used to check the cryptocurrency trend.
Since it's always good to follow the bitcoin trend when bitcoin trading, in Multiple Time Frame Bitcoin Analysis, the longer bitcoin time frame gives us the direction of the long term cryptocurrency trend.
If the long term bitcoin trend direction supports the direction of the smaller bitcoin time frame 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 time frames to trade as 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 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 bitcoin chart show bitcoin trend is heading upwards, then decides from this cryptocurrency analysis it is ok to open a buy bitcoin trade transaction.
Multi Chart Timeframe Crypto Trading Scalping Crypto - Multiple Timeframe Crypto Analysis PDF
Bitcoin Day Traders
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 go long, checks 1 hour bitcoin chart, which looks like the btcusd chart below, since 1 hour bitcoin chart shows bitcoin trend is heading upwards, then decides from this cryptocurrency analysis it is ok to open a buy bitcoin trade transaction.
Multi Chart Timeframe Crypto Trading Intraday Crypto Trading - Multiple Timeframe Crypto Analysis PDF
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 btcusd chart example illustrated below, since 4 hour bitcoin chart shows the bitcoin trend is heading downwards, then decides from this cryptocurrency analysis it is ok to open a sell bitcoin trade transaction.
Multi Chart Timeframe Swing Crypto Trading - Multiple Timeframe Crypto Analysis PDF
Position BTCUSD 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 btcusd chart example illustrated below, since weekly bitcoin chart shows the bitcoin trend is heading downwards, then decides from this cryptocurrency analysis it is ok to open a sell bitcoin trade transaction.
Multi Chart Timeframe Crypto Trading Positional Crypto Trading - Multiple Timeframe Crypto Analysis PDF
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
