Best Time Frame to Trade CFDs
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 CFD trader uses multiple Timeframes CFD trading analysis strategy:
Multiple Timeframe CFD 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 Time-frame Chart Indicator - Multiple Time-frame Analysis PDF
Multiple Timeframe Trading System
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 System - Multiple Timeframe Analysis PDF
Multiple Timeframes on CFDs Chart MT4
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 Timeframes on CFDs Chart MT4 - Multiple Timeframe Analysis PDF
Multiple Time Frames In Chart Trading
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 Frames In Chart Trading - Multiple Time Frame Analysis PDF
How to Define A CFDs 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 CFD Trading Trend
Both Moving Averages Moving Up
RSI CFD Indicator Above 50
MACD CFD Indicator Above Centerline
Downward CFDs Trading Trend
Both Moving Averages Moving Down
RSI CFD Indicator Below 50
MACD CFD Indicator Below Centerline
