How Do I Do Position Trading with Different Chart Time frames? - Position Strategies

Forex Position Trading on Multiple Charts - Chart Time Frames

Position Traders

These group of forex are the investors that hold on to their trades for weeks or months. With the objective of making a big number of pips, 300 - 1,000 pips.

Position trader using the daily chart timeframe wants to go short, checks weekly chart time frame, weekly chart timeframe looks like the one below, since weekly chart shows the trend is going down, then decides from the technical analysis it's okay to sell.

Forex Position Trading on Multiple Charts - Example of Position Time Frames

Forex Position Traders using technical analysis use charts to try & attempt to predict the movement of price on the trading charts.

Forex Position traders will sometimes use two or more time frames so as to determine the long term trend & the short term trend.

How to Define a Price Trend for Position Trading

Using a system that has 3 indicators - MA Crossover System, RSI & MACD & using simple trading rules to define the trend. The trading rules are:

Up-wards Trend

Both MAs Moving Up

RSI Indicator above 50 Mark

MACD Above Center Line

Downwards Trend

Both MAs Moving Down

RSI Indicator below 50 Mark

MACD Below Centerline

Multiple charts time frames analysis equals using two time frames to trade currencies - a shorter chart timeframe used for trading and a longer chart timeframe to check the trend - the time frames that you select for price action with will depend on the type of trader you are: for Position Traders the chart time frames used for trading will be an example of daily chart time frame & weekly chart timeframe.

Since it's always good to follow the trend when Position Trading, in Multiple Time Frame Analysis, the longer week time frame gives us the direction of the long term trend when Position Trading using the daily Chart Time Frame.