Best Timeframe to Trade Commodities Trading

Multiple timeframe commodity analysis equals using 2 commodity chart time-frames to trade commodity - a shorter commodity chart timeframe used for trading & a longer commodity chart time-frame used to check the commodities trend.

Since it's always good to follow the commodity trend when commodity trading, in Multiple Timeframe Commodities Trading Analysis, the longer commodity chart time-frame gives us the direction of the long term commodities trend.

If the long term commodity trend direction supports the direction of the smaller commodity chart time-frame 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 the 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 time-frames to trade as illustrated and shown below.

Examples of how each type of Commodity trader uses multiple Commodities chart Time Frames analysis strategy:

Multi Time Frame Scalping

Scalpers hold on to their commodities trades for only a few minutes. Scalper commodity trader never holds onto 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 go long, checks 5 min chart, which looks like the one below, since 5 minute chart show commodity trend is moving up, then decides from this commodity technical analysis it is okay to open a buy commodity trade.

Multi Time-frame Scalping Commodities Trading - Multiple Timeframe Trading Strategy Commodity Trading

Multi Time Frame Intraday Trading Commodity

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 go long, checks 1H commodity chart, which looks like the commodities chart below, since 1H commodity chart shows commodity trend is moving up, then decides from this commodity technical analysis it is okay to open a buy commodity trade.

Multi Time-frame Day Trading Commodities - Multi Time Frame Intraday Trading Commodities - Multiple Time-frame Trading Strategy Commodity Trading

Multi Time Frame Swing 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 4H commodity chart, which looks like the commodities chart example shown below, since 4H commodity chart shows the commodity trend is heading down, then decides from this commodity technical analysis it is okay to open a sell commodity trade.

Multi Time-frame Swing Trading Commodities - Multi Time Frame Swing Trading Commodities - Multiple Time-frame Trading Strategy Commodity Trading

Multi Time Frame Positional Trading Commodity

Position commodity traders are traders that hold onto 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 short sell, checks weekly commodity chart, weekly looks like the commodities chart examples illustrated below, since weekly commodity chart shows the commodity trend is heading down, then decides from this commodity technical analysis it is okay to open a sell commodity trade.

Multi Time-frame Positional Trading Commodities - Multiple Time-frame Trading Strategy Commodity Trading

How to Define A Commodities Trading Trend

Using a commodities trading system that has 3 commodity technical indicators - Moving Averages Crossover System, RSI Commodities Trading Indicator & MACD Commodities Trading Indicator - & 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