CFD Position Trading Strategies

Example of CFD Position Trade CFDs Chart Timeframes

Position Traders

These group of cfd are the investors that hold on to their trades for weeks or months. With the objective of making a large number of pips, 300 - 1,000 pips.

Position cfd trader using the daily chart timeframe wants to go short, checks weekly cfd chart timeframe, weekly cfd chart timeframe looks like the one below, since weekly cfd chart shows the cfd trend is going down, then decides from this technical analysis it is ok to sell.

Example of CFD Position Trade CFDs Chart Time-frames

CFD Position Traders using technical analysis use cfd charts to try & attempt to predict the movement of cfd price on the trading charts.

CFD Position traders will sometimes use two or more cfd chart timeframes so as to figure out the long term cfd trend & short term cfds trend.

How to Define A CFD Price CFD Trend for Position Trading

Using a cfd system that has Three indicators - Moving Average Crossover System, RSI & MACD & using simple rules to define the cfds trend. The trading rules are:

Upward CFD Trend

Both MAs Moving Up

RSI above 50

MACD Above Centerline

Downward CFDs Trend

Both MAs Moving Down

RSI below 50

MACD Below Centerline

Multiple cfd charts time frames analysis equals using 2 chart timeframes to trade cfd - a shorter cfd chart timeframe used for trading & a longer chart time frame to check the cfds trend - chart timeframes that you choose for cfd price action with will depend on the type of trader you are: for Position Traders the chart timeframes used for trading will be an example of daily chart time frame and weekly cfd chart timeframe.

Since it is always good to follow the cfd trend when cfd Position Trading, in Multiple Chart Time-frame Analysis, the longer weekly cfd chart time frame gives us the direction of the long-term cfd trend when Position trading using the daily CFDs Chart Timeframe.