Multiple Time-frame Analysis

Multiple time-frames analysis equals using 2 chart timeframes to trade cryptocurrency trading - a shorter one used for trading and a longer one to check Bitcoin trend.

Since it is always good to follow the trend, in Multiple Chart Time-frame Analysis, longer time-frame provides us the direction of the long term trend.

If the long term market direction is in support of the direction of the smaller chart time-frame then probability of being profitable is greatly increased. This is because even if you make mistake the long term bitcoin trend will eventually save you. Also if you trade within the direction of the market, then mostly you'll be on winning side, this is what this trading analysis is about.

Remember there's a popular saying by many Bitcoin & stock market traders that says: "The btcusd trend is your best friend' - never go contrary the btcusd trading market.

There are 4 various types of Bitcoin traders - all these use different charts to trade as is explained below.

Explanation examples of how each type of BTCUSD trader uses multiple Bitcoin BTCUSD time-frames analysis strategy:

Scalpers

This group holds onto their trade transactions only for a couple of minutes. Scalper never holds onto a trade transaction for more than ten minutes. With the objective of earning a small number of pips as trading profit, 5 - 20 pips.

A Scalper using 1 minute chart timeframe wants to open long, checks 5 min trading chart, that look like the one below, since 5 min illustrate bitcoin trend is heading up, then decides from this analysis it's okay to buy.

Multiple Time-frame How to Trade Bitcoin Charts with Multiple Chart Time-frames Bitcoin Analysis Method

Day Traders

This group holds onto their trade positions for few hours but not more than one day. With the objective of earning quite a number of pips: 30 - 100 pips.

Day trader 15 minutes trading chart timeframe wants to go long, checks 1 Hour chart, that look like the one below, since 1H highlights market bitcoin trend is heading up, then decides from this trading analysis it's okay to buy

Multiple Time Frame How to Trade BTCUSD with Multiple Time-frame BTCUSD Analysis Method

Swing Traders

This group holds onto their trade positions for few days to a week. With main objective of earning a large number of pips: 100 - 400 pips.

Swing trader using the H1 chart time-frame wants to open short, checks the 4 Hour chart, that look like the cryptocurrency trading example illustrated below, since 4 hour displays the btcusd trend is heading down, then decides from this analysis it's okay to sell.

Multiple Time-frame How to Trade Bitcoin with Multiple Time Frame Bitcoin Analysis Method

Position traders

These are the traders who hold onto their trade transactions transactions for weeks or months. With the objective of earning a big number of pips: 300 - 1000 pips.

Position trader using the daily trading chart timeframe wants to go short, checks weekly chart, weekly resembles and looks like the one below, since weekly displays the bitcoin trend is heading down, then decides from this trading analysis it's okay to sell.

Position trader multiple Time-frame analysis

How to Define A BTCUSD Trend

Using a bitcoin trading system has Three indicators - ==22==MA--Moving--AverageMA(Moving--Average)Moving--Average(MA) Cross over System, RSI & MACD ==22==& uses simple guidelines to define the trend. The Rules Are:

Upwards trend

Both MAs Moving Up

RSI above 50 Level

MACD Above Center Line

Down-ward BTCUSD Trend

Both MAs Moving Averages Moving Down

RSI below 50 Level

MACD Below Centerline

For More details & particulars about this strategy read: How to Generate Bitcoin Signals with a Bitcoin System.

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