Using Multiple Timeframes
Multiple time-frame commodity strategy equals using 2 chart time-frames to trade commodity - a shorter chart timeframe used for trading & a longer chart timeframe used to check the commodities trend.
Since it's always good to follow the commodity trend when commodity trading, in Multiple Timeframe Commodities Analysis, the longer chart timeframe gives us the direction of the long term commodities trend.
If the long term commodity trend direction supports the direction of the smaller chart timeframe then probability of opening a profitable commodity trade is greatly increased. This is because even if you make a mistake the long term commodity 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 Commodities Trading Analysis is all about.
Remember there is a popular saying by many traders and traders that says: 'The commodity trend is your friend' - never go against the commodity trend when trading.
There are four different types of commodity traders - all these different types of commodity traders use different chart timeframes to trade as illustrated and shown below.
Examples of how each type of commodity trader uses multiple time frames commodity strategy:
Multiple Time-frame Commodities Trading Analysis Scalping
Scalpers hold on to their commodities trades for only a few minutes. The scalping commodity trader never holds on to a commodity trade for more than ten minutes. With the objective of making small amount of pips profit: 5 to 15 pips.
A Scalper using 1 min chart wants to open a buy commodity trade, checks 5 min chart, which looks like the one below, since 5 minute chart show commodity trend is heading up, then decides from this multiple time-frame commodity trading strategy it is okay to open a buy commodity trade.
Technical Analysis Using Multiple Time-frames
Multiple Commodity Trading Time Frame Analysis
Day commodity traders hold on to their open commodities trades for a few hours but not more than a day. With the objective of making quite a number of pips profit: 30 - 60 pips.
Commodity Trading day trader trading 15 min chart wants to open a buy commodity trade, checks 1H commodity chart, which looks like the commodities chart below, since 1H commodity chart shows commodity trend is heading up, then decides from this multiple time-frame commodity trading strategy it is okay to open a buy commodity trade.
Multiple Timeframe Commodity Trading Analysis Day Commodity Trading - Multiple Commodity Trading Timeframe Analysis
Trading 2 or 3 Time Frames on Commodities Trading Charts
Swing commodity traders hold on to their open commodities trades for a few days to a week. With the objective of making a large number of pips profit: 100 - 250 pips.
Swing trader using 1H commodity chart wants to open a sell commodity trade, checks 4H commodity chart, which looks like the commodities chart example shown below, since 4H commodity chart shows the commodity trend is moving downwards, then decides from this multiple timeframe commodity strategy it's okay to open a sell commodity trade.
Trading 2 or 3 Time Frames on Commodities Trading Charts - Trading 2 or 3 Timeframes on Commodity Trading Charts
Multiple Time-frame Strategy
Position commodity traders are traders that hold on to their commodities trades for weeks or months. With the objective of making a large number of pips profit: 300 - 800 pips.
Position commodity trader using the daily chart wants to open a sell commodity trade, checks weekly commodity chart, weekly looks like the commodities chart example illustrated below, since weekly commodity chart shows the commodity trend is moving downwards, then decides from this multiple timeframe commodity strategy it's okay to open a sell commodity trade.
Multiple Time-frame Strategy
Commodity Trading Multiple Time Frame Commodity Strategy - Using Multiple Commodity Trading Timeframes - Commodity Trading Multiple Time Frame Strategy - Multiple Commodity Timeframe Analysis - Trading 2 or 3 Commodity Trading Time Frames on Commodities Trading Charts - Multiple Time-frame Commodities Trading Analysis
