Best Time Frame to Trade CFDs
Multiple time-frame cfds trading analysis equals using 2 cfd trading time frames to trade cfds trading - a shorter cfd timeframe used for trading & a longer cfd trading 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 cfd trading 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 cfd trading time frame then the 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 trend, then mostly you will be on the winning side - this is what this Multiple Time Frame CFD Trading Analysis is all about.
Remember there's a popular saying by many traders & 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 cfd trading time-frames to trade as shown below.
Examples of how each type of CFD trader uses multiple Timeframes CFDs trading analysis strategy:
Multi Timeframe CFD 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 min chart wants to go long, checks 5 minutes chart, which looks like the one below, since 5 minute chart show cfd trend is moving up, then decides from this cfd analysis it is okay to open a buy cfd trade.
Multi Timeframe CFD Scalping CFD Trading - Multiple Time-frame CFD Trading Analysis Guide
Multi Timeframe CFD Intraday CFD
Day cfd traders hold on to their open cfds trades for a few hours but not more than a day. With the objective to make quite a number of pips in profit, 30 - 60 pips.
CFD Trading day trader trading 15 min chart wants to go long, checks 1 hour cfds trading chart, which looks like the cfd chart below, since 1 hour cfd chart shows cfd trend is moving up, then decides from this cfd analysis it is okay to open a buy cfd trade.
Multi Timeframe CFD Day CFDs - Multi Timeframe CFD Intraday CFDs - Multiple Timeframe CFD Trading Analysis Guide
Multi Timeframe CFD Swing CFD
Swing cfd traders hold on to their open cfds trades for a few days to a week. With the objective 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 cfds trading chart, which looks like the cfd chart examples explained below, since 4 hour cfd chart shows the cfd trend is heading down, then decides from this cfd analysis it is okay to open a sell cfd trade.
Multi Timeframe CFD Swing CFDs - Multi Timeframe CFD Swing CFDs - Multiple Timeframe CFD Trading Analysis Guide
Multi Timeframe CFD Positional CFD
Position cfd traders are traders who hold on to their cfds trades for weeks or months. With the objective 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 cfds trading chart, weekly looks like the cfd chart examples explained below, since weekly cfd chart shows the cfd trend is heading down, then decides from this cfd analysis it is okay to open a sell cfd trade.
Multi Timeframe CFD Positional CFDs - Multiple Timeframe CFD Trading Analysis Guide
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:
Upwards CFDs Trading Trend
Both Moving Averages Moving Up
RSI CFD Indicator Above 50
MACD CFD Indicator Above Centerline
Downwards CFD Trading Trend
Both Moving Averages Moving Down
RSI CFD Indicator Below 50
MACD CFD Indicator Below Centerline
