Best Timeframe to Trade CFD

Multiple time-frame cfds trading analysis 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 CFDs trader uses multiple Time Frames CFDs trading analysis strategy:

Multiple Timeframe CFDs Trading Analysis Scalping

Scalpers hold on to their cfds trades for only a few minutes. The scalper 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 go long, checks 5 minutes chart, which looks like the one below, since 5 min chart show cfd trend is heading upwards, then decides from this cfd analysis it's okay to open a buy cfd trade.

Multiple Chart Time-frame CFDs - Multiple Chart Time-frame Strategy

Multiple Timeframe Trading Methodology PDF

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 Trading day trader trading 15 minute chart wants to go long, checks 1 hour cfd chart, which looks like the cfds chart below, since 1 hour cfd chart shows cfd trend is heading upwards, then decides from this cfd analysis it's okay to open a buy cfd trade.

Multiple Time Frame Trading Methodology PDF - Multiple Chart Time-frame Strategy

Multiple Timeframe Trading CFD

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 go short, checks 4 hour cfd chart, which looks like the cfds chart examples explained below, since 4 hour cfd chart shows the cfd trend is heading downwards, then decides from this cfd analysis it's okay to open a sell cfd trade.

Multiple Time Frame CFD Trading - Multiple Chart Time-frame Strategy

Multiple Timeframe Strategy PDF

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 short sell, checks weekly cfd chart, weekly looks like the cfds chart example explained below, since weekly cfd chart shows the cfd trend is heading downwards, then decides from this cfd analysis it's okay to open a sell cfd trade.

Multiple Time-frame Trading Strategy PDF - Multiple Chart Time-frame Strategy

How to Define A CFD Trading Trend

Using a cfd system that has 3 cfd indicators - Moving Averages Crossover System, RSI CFDs Indicator and MACD CFDs Indicator - and uses simple rules to define the cfds trend. The rules are:

Upward CFDs Trading Trend

Both Moving Averages Moving Up

RSI CFD Indicator Above 50

MACD CFD Indicator Above Centerline

Downward CFD Trading Trend

Both Moving Averages Moving Down

RSI CFD Indicator Below 50

MACD CFD Indicator Below Centerline