Best Timeframe to Trade CFD
Multiple time-frame cfds trading analysis equals using 2 cfds trading chart time-frames to trade cfds trading - a shorter cfds trading chart timeframe used for trading & a longer cfds trading 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 cfds trading 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 cfds trading chart 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 chart time-frames to trade as shown & illustrated below.
Examples of how each type of CFDs trader uses multiple CFD trading chart Time-frames analysis strategy:
Multi Timeframe 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 technical analysis it is okay to open a buy cfd trade.
Multi Timeframe Scalping CFD Trading - Multiple Timeframe Trading Strategy CFD
Multi Timeframe Intraday Trading 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 technical analysis it is okay to open a buy cfd trade.
Multi Timeframe Intraday CFD Trading - Multiple Timeframe Trading Strategy CFD
Multi Timeframe Swing Trading 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 technical analysis it is okay to open a sell cfd trade.
Multi Timeframe Swing CFD Trading - Multiple Timeframe Trading Strategy CFD
Multi Timeframe Positional Trading 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 technical analysis it is okay to open a sell cfd trade.
Multi Timeframe Positional CFD Trading - Multiple Timeframe Trading Strategy CFD
How to Define A CFD Trading Trend
Using a cfd system that has 3 cfds trading 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
