Best Timeframe to Trade XAUUSD
Multiple timeframe trading analysis equals using two chart time-frames to trade gold - a shorter chart timeframe used for trading & a longer chart timeframe used to check the trend.
Since it is always good to follow the trend when xauusd, in Multiple Chart Time-Frame Analysis, the longer chart time-frame gives us the direction of the long term trend.
If the long term trend direction supports the direction of smaller chart time-frame then probability of opening a profitable trade is significantly increased. This is because even if you makes a mistake the long term trend will eventually save you. Also if you trade with direction of the market trend, then mostly you will be on the winning side - this is what this Multiple Time-frame Trade Analysis is all about.
Remember there a popular saying by many traders & investors that says: 'The trend is your friend' - never go contra the market trend when trading.
There are 4 different types of traders - all these various types of traders use different chart time-frames to trade as shown below.
Examples of how each type of trader uses multiple timeframes trading analysis strategy:
Multiple Time Frame Trade Analysis Scalping
Scalpers hold onto their trades for only a few minutes. Scalper trader never holds on to a trade for more than ten minutes. With objective of earning little sums of pips as a profit, 5 to 15 pips.
A Scalper using 1 min chart wants to go long, checks five minutes chart, that resembles the one below, since 5 min chart show trend is moving up, then decides from the analysis it is okay to open a buy trade.
Multiple Chart Timeframe XAUUSD
Multiple Time Frame Analysis Day XAUUSD
Day traders hold onto their open trades for few hours but not more than a day. With the aim to make quite a number of pips in profit: 30 - 60 pips.
XAUUSD day trader 15 min chart wants to go long, checks 1 hour chart, that resembles the chart below, since 1 hour chart shows trend is moving up, then decides from the analysis it is okay to open a buy trade.
Multiple Time-frame Analysis Day Gold - Multiple Timeframe Methodology Guide
Multiple Time Frame XAUUSD
Swing traders hold onto their open trades for few days to a week. With the aim to make a large number of pips in profit: 100 - 250 pips.
Swing trader using 1 hour chart wants to go short, checks 4 hour chart, that resembles the chart example shown below, since 4 hour chart shows the trend is moving down, then decides from the analysis it is okay to open a sell trade.
Multiple Time Frame XAUUSD - Multiple Timeframe XAUUSD Trading
Multiple Time Frame Strategy PDF
Position traders are traders who hold onto their trades for weeks or months. With the aim to make a large number of pips in profit: 300 - 800 pips.
Position trader using the daily chart wants to short, checks the weekly chart, week resembles the chart examples shown below, since weekly chart shows the trend is moving down, then decides from the analysis it is okay to open a sell trade.
Multiple Time Frame Strategy Guide
How to Define A Trend
Using a system that has Three indicators - Moving Averages Cross over System, RSI Indicator & MACD Indicator - & uses simple trading guidelines to define the trend. The rules are:
Upwards Trend
Both Moving Averages Moving Up
RSI Gold Indicator Above 50
MACD XAUUSD Indicator Above Center Line
Downwards Trend
Both Moving Averages Moving Down
RSI Gold Indicator Below 50
MACD XAUUSD Indicator Below Center Line
