Multiple Time Frame Analysis

Multi-timeframe analysis involves utilizing two different chart timeframes for cryptocurrency trading: a shorter interval for executing trades and a longer interval for confirming the overall Bitcoin trend direction.

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.

When long-term market flow matches your short-frame direction, wins come easier. A wrong move gets fixed by the big trend. Stick to the market's path, and you join the winners. That's the heart of this analysis.

Remember, many Bitcoin and stock market traders often say, "The btcusd trend is your friend," meaning never trade against what the btcusd trading market is doing.

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

Scalpers hold trades for just a few minutes. They close within 10 minutes max. The goal is small gains of 5 to 20 pips.

A Scalper using 1 Minutes chart timeframe wants to execute 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 is okay button to buy.

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

Day Traders

This group keeps their trades going for a few hours but never longer than a day, aiming to make a good number of pips: from 30 to 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 is okay button to buy

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

Swing Traders

This group holds trades for days to a week. Their goal is 100 to 400 pips.

A swing trader using the H1 chart to trade for a short time checks the 4-hour chart, like the cryptocurrency trading example below, because the 4-hour chart shows the btcusd trend is going down, so they decide it's okay to sell based on this information.

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

Position traders

These traders hold positions for weeks or months. They aim for 300 to 1000 pips in profit.

A trader who holds positions for longer using the daily chart wants to sell, looks at the weekly chart, and the weekly chart is similar to the one shown: because the weekly chart shows the bitcoin trend is going down, they decide it is okay to sell based on this study.

Position trader multiple Time-frame analysis

How to Define A BTCUSD Trend

Using a bitcoin trading strategy has Three indicators - Moving Average(MA) Cross over System, RSI & MACD & uses simple rules 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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