Technical Analysis Using Multiple Timeframes
Multiple time-frame cfd trading strategy equals using 2 chart time-frames to trade cfds trading - a shorter chart timeframe used for trading and a longer chart time frame used to check the cfds trend.
Since it is always good to follow the cfd trend when cfd, in Multiple Chart Time-frame CFD Trading Analysis, the longer chart time frame gives us the direction of the long term cfds trend.
If the long term cfd trend direction supports the direction of the smaller chart time-frame then probability of opening a profitable cfd trade is significantly increased. This is because even if you make a mistake the long term cfd trend will eventually save you. Also if you trade with direction of the trend, then mostly you will be on the winning side - this is what this Multiple Timeframe CFD Trading Analysis is all about.
Remember there is a popular saying by many traders and investors that says: 'The cfd trend is your friend' - never go against the cfd trend when trading.
There are four different types of cfd traders - all these different types of cfd traders use different chart time frames to trade as shown below.
Examples of how each type of cfd trader uses multiple time frames cfd trading strategy:
Multiple Timeframe CFD Trading Analysis Scalping
Scalpers hold on to their cfds trades for only a few minutes. Scalping cfd trader never holds on to a cfds trade for more than ten minutes. With the objective of making small amounts of pips as profit, 5 pips - 15 pips.
A Scalper using 1 minute chart wants to open a buy cfd trade, checks 5 minute chart, which looks like the one below, since 5 min chart show cfd trend is moving upward, then decides from this multiple timeframe cfd strategy it is okay to open a buy cfd trade.
Technical Analysis Using Multiple Timeframes - CFD Multiple Time-frame Trading Strategy
Multiple CFD Trading Time Frame Analysis
Day cfd traders hold on to their open cfds trades for a few hours but not more than a day. With the aim to make quite a number of pips in profit, 30 - 60 pips.
CFD day trader trading 15 minute chart wants to open a buy cfd trade, checks 1 hour cfds trading chart, which looks like the cfd chart below, since 1 hour cfd chart shows cfd trend is moving upward, then decides from this multiple timeframe cfd strategy it is okay to open a buy cfd trade.
Multiple CFD Trading Time Frame Analysis - CFD Multiple Time-frame Trading Strategy
Trading 2 or 3 Time Frames on CFDs Charts
Swing cfd traders hold on to their open cfds trades for a few days to a week. With the aim to make a large number of pips in profit, 100 - 250 pips.
Swing trader using 1 hour cfd chart wants to open a sell cfd trade, checks 4 hour cfds trading chart, which looks like the cfd chart examples explained below, since 4 hour cfd chart shows the cfd trend is heading downwards, then decides from this multiple time-frame cfd strategy it is okay to open a sell cfd trade.
Trading 2 or 3 Time Frames on CFDs Charts - CFD Multiple Time-frame Trading Strategy
Multiple Timeframe CFD Strategy
Position cfd traders are traders who hold on to their cfds trades for weeks or months. With the aim to make a large number of pips in profit, 300 - 800 pips.
Position cfd trader using the daily chart wants to open a sell cfd trade, checks weekly cfds trading chart, weekly looks like the cfd chart example explained below, since weekly cfd chart shows the cfd trend is heading downwards, then decides from this multiple time-frame cfd strategy it is okay to open a sell cfd trade.
Multiple Time Frame CFD Strategy - CFD Multiple Time-frame Trading Strategy
CFD Trading Multiple Time Frame CFDs Trading Strategy - Technical Analysis Using Multiple CFDs Time Frames - CFD Multiple Time-frame Trading Strategy - Multiple CFD Trading Timeframe Analysis - Trading 2 or 3 Timeframes on CFDs Charts - Multiple Timeframe CFD Trading Analysis
