Best Time-Frame to Trade Gold

Multiple time frames analysis equals using 2 chart time frames to trade Gold - a shorter one used for trading and a longer one to check trend.

Since it's always good to follow the market trend, in Multiple Time-Frame Analysis, the longer time-frame gives us the direction of the long-term trend.

If the long-term market direction supports the direction of the smaller time frame then the probability of being profitable is greatly increased. This is because even if you make mistake the long-term trend will eventually save you. Also if you trade with direction of market, then mostly you will be on the winning side, this is what this type of analysis is about.

Remember there's a popular saying by many Gold and stock market investors that says: "The trend is your best friend' - never go against the market.

There are four different types of traders - all these use different charts to trade as described below.

Examples of how each type of trader uses multiple Trading time frames analysis strategy:

Best Time-Frame to Trade Gold

This group holds onto their trade transactions for only a few minutes. The scalper never holds on to a trade for more than ten minutes. With the aim of earning small amounts of pips as profit, 5 - 20 pips.

A Scalper using 1 min chart wants to go long, checks 5 min chart, which looks like the one below, since 5 min show trend is moving up, then decides from the analysis it is ok to buy.

Best Timeframe to Trade XAUUSD

Best Time-Frame to Trade Gold

Best Time-Frame to Trade XAUUSD

This group holds onto their trade transactions for few hours but not for more than a day. With the objective to make quite a number of pips: 30 - 100 pips.

Day trader trading 15 min chart wants to go long, checks 1 Hour chart, which looks like the one below, since 1 hour portrays market trend is moving up, then decides from the analysis it is ok to buy

Best Time Frame to Trade Gold - Multiple Timeframes on One Chart Multiple Chart Timeframe Gold Trading

Best Time-Frame to Trade XAUUSD

Best Time-Frame to Trade XAUUSD

This group holds onto their trade transactions for a few days to a week. With the objective to make a big number of pips: 100 - 400 pips.

Swing trader using 1 Hour chart wants to go short, checks 4 hour chart, which looks like the example shown below, since 4 hour illustrates the market trend is moving down, then decides from the analysis it's ok to sell.

Using Multiple Trading Time Frames

Best Time-Frame to Trade Gold

Best Time-Frame to Trade XAUUSD

These are the investors who hold on to their trade transactions for weeks or months. With the objective to make a big number of pips: 300 - 1000 pips.

Position trader using daily chart wants to short sell, checks the week chart, weekly looks like one below, since weekly highlights the trend is moving down, then decides from the analysis it's ok to sell.

How Do I Analyze Price with Different Time Frames?