Best Timeframe to Trade Commodity Trading
Multiple time-frame commodity analysis equals using 2 chart timeframes 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 Commodities trader uses multiple Timeframes Commodity analysis strategy:
Multiple Timeframe Commodity Trading Analysis Scalping
Scalpers hold on to their commodities trades for only a few minutes. Scalper 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 trading chart wants to go long, checks the 5 minute chart, that look like the one below, since 5 min trading chart show commodity trend is heading upwards, then decides from this commodities analysis it is ok to open a buy commodity trade.
Multiple Timeframe Commodity Trading
Multiple Time-frame Trading Methodology PDF
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 minute trading chart wants to go long, checks 1 hour commodities trading chart, which looks like the commodity chart below, since 1H commodity chart shows commodity trend is heading upwards, then decides from this commodities analysis it is ok to open a buy commodity trade.
Multiple Timeframe Commodity Trading Analysis Day Commodity Trading - Multiple Time Frame Trading Strategy PDF
Multiple Time-frame Trading Commodity
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 go short, checks 4 hour commodities trading chart, which looks like the commodity chart example shown below, since 4H commodity chart shows the commodity trend is moving downwards, then decides from this commodities analysis it is ok to open a sell commodity trade.
Multiple Time Frame Trading Commodities - Multiple Time-frame Trading Commodity
Multiple Time-frame Trading Strategy Guide
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 trading chart wants to short sell, checks weekly commodities trading chart, weekly looks like the commodity chart example illustrated below, since weekly commodity chart shows the commodity trend is moving downwards, then decides from this commodities analysis it is ok to open a sell commodity trade.
Multiple Time Frame Strategy PDF
How to Define A Commodities Trading Trend
Using a commodities trading system that has 3 commodities technical indicators - Moving Averages Crossover System, RSI Commodities Technical Indicator & MACD Commodities Technical Indicator - and uses simple rules to define the commodities trend. The rules are:
Upwards Commodity Trading Trend
Both Moving Averages Moving Up
RSI Commodity Indicator Above 50
MACD Commodity Trading Indicator Above the Center line
Downwards Commodities Trading Trend
Both Moving Averages Moving Down
RSI Commodity Indicator Below 50
MACD Commodity Indicator Below Centerline
