Best Time-Frame to Trade Gold

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

Since it's always good to follow the market trend when gold, in Multiple Time-Frame Trading Analysis, the longer 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 trading is significantly increased. This is because even if you make mistake the long-term trend will eventually save you. Also if you trade in direction of trend, then mostly you'll be on the winning side - this is what this Multiple Time-Frame Analysis is all about.

Remember there's a popular saying by many traders and traders that says: 'The trend is your best friend' - never go contrary the trend when trading.

There are 4 various types of traders - all these different types of traders use different time frames to trade as shown below.

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

Best Chart Timeframe for Scalping

Scalper traders hold on to their trades for only a few minutes. Scalper trader never holds onto a trade for more than 10 minutes. With goal of earning small sums of pips as profit, 5 - 15 pips.

A Scalper using 1 minute chart wants to go long, checks 5 minute chart, which resembles the one below, since 5 min show trend is moving up, then decides from the technical analysis it's okay to buy.

Best Chart Timeframe for Scalping Trading

Best Chart Timeframe for Day Trading

Day traders hold on to their open trade transactions for few hours but not more than a day. With the objective to make quite a number of pips in profit: 30 - 60 pips.

XAUUSD Trading day trader 15 min chart wants to go long, checks 1 hour chart, which resembles the one below, since 1 hour shows trend is moving up, then decides from the technical analysis it's okay to buy

Best Chart Timeframe for Day Trading - Best Chart Timeframe for Intraday Trading

Best Chart Timeframe for Swing XAUUSD

Swing traders hold on to their open trades for few days to a week. With the objective to make a big number of pips in profit: 100 - 250 pips.

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

Best Chart Timeframe for Swing Trading - Best Chart Timeframe for Swing Trading

Best Chart Timeframe for Positional XAUUSD

Position traders are traders who hold on to their trades for weeks or months. With the objective to make a big number of pips in profit: 300 - 800 pips.

Position trader using the daily chart wants to go short, checks the weekly chart, weekly resembles the one below, since weekly highlights the market trend is moving down, then decides from the technical analysis it is ok to sell.

Best Chart Timeframe for Positional XAUUSD Trading

How Do I Define a XAUUSD Trend

Using a system that has 3 indicators - MAs Cross Over System, RSI Indicator and MACD Indicator - & uses simple rules to define the trend. The rules are:

Upwards Trend

Both MAs Moving Up

RSI Gold Indicator Above 50

MACD XAUUSD Indicator Above Center-Line

Down-wards Trend

Both Moving Averages Moving Down

RSI XAUUSD Indicator Below 50

MACD XAUUSD Indicator Below Centerline