Best Time Frame to Trade Indices

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

Since it's always good to follow the stock indices trend when stock indices, in Multiple Time Frame Stock Indices Trading Analysis, the longer stock index chart time-frame gives us the direction of the long term stock index trend.

If the long term stock indices trend direction supports the direction of the smaller stock index chart time-frame then probability of opening a profitable stock indices trade is significantly increased. This is because even if you make a mistake the long term stock indices trend will eventually save you. Also if you trade with the direction of the trend, then mostly you will be on the winning side - this is what this Multiple Time Frame Stock Indices Trading Analysis is all about.

Remember there is a popular saying by many traders & investors that says: 'The stock indices trend is your friend' - never go against the stock indices trend when trading.

There are four different types of stock indices traders - all these different types of stock indices traders use different chart timeframes to trade as displayed below.

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

Multi Timeframe Scalping

Scalpers hold on to their stock index trades for only a few minutes. Scalper stock indices trader never holds onto a stock indices trade for more than ten minutes. With the objective of making small amounts of pips as profit, 5 to 15 pips.

A Scalper using 1 min chart wants to go long, checks 5 minute chart, which looks like the one below, since 5 minute chart show stock indices trend is heading upwards, then decides from this stock index technical analysis it is okay to open a buy stock index trade transaction.

Multi Timeframe Scalping Stock Indices Trading - Multiple Time Frame Trading Strategy Stock Indices

Multi Timeframe Intraday Trading Stock Indices

Day stock indices traders hold on to their open stock index trades for a few hours but not more than a day. With the aim to make quite a number of pips in profit, 30 - 60 pips.

Stock Indices Trading day trader trading 15 min chart wants to go long, checks 1 hour stock index chart, which looks like the stock indices chart below, since 1 hour stock indices chart shows stock indices trend is heading upwards, then decides from this stock index technical analysis it is okay to open a buy stock index trade transaction.

Multi Timeframe Intraday Stock Indices Trading - Multiple Time Frame Trading Strategy Stock Indices

Multi Timeframe Swing Trading Stock Indices

Swing stock indices traders hold on to their open stock index trades for a 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 stock indices chart wants to go short, checks 4 hour stock index chart, which looks like the stock indices chart example illustrated below, since 4 hour stock indices chart shows the stock indices trend is moving downwards, then decides from this stock index technical analysis it is okay to open a sell stock index trade transaction.

Multi Timeframe Swing Stock Indices Trading - Multiple Time Frame Trading Strategy Stock Indices

Multi Timeframe Positional Trading Stock Indices

Position stock indices traders are traders who hold onto their stock index trades for weeks or months. With the aim to make a large number of pips in profit, 300 - 800 pips.

Position stock indices trader using the daily trading chart wants to go short, checks the weekly stock index chart, weekly looks like the stock indices chart example illustrated below, since weekly stock indices chart shows the stock indices trend is moving downwards, then decides from this stock index technical analysis it is okay to open a sell stock index trade transaction.

Multi Timeframe Positional Stock Indices Trading - Multiple Time Frame Trading Strategy Stock Indices

How to Define A Indices Trend

Using a stock indices system that has 3 stock index indicators - Moving Averages Crossover System, RSI Stock Index Indicator & MACD Stock Index Indicator - & uses simple rules to define the stock index trend. The rules are:

Upwards Stock Indices Trend

Both Moving Averages Moving Up

RSI Stock Indices Indicator Above 50

MACD Stock Indices Indicator Above Centerline

Downwards Indices Trend

Both Moving Averages Moving Down

RSI Stock Indices Indicator Below 50

MACD Stock Indices Indicator Below Centerline