Multiple Time-frame Analysis PDF

Multiple time-frame oil analysis equals using 2 chart timeframes to trade oil - a shorter chart timeframe used for trading & a longer chart timeframe used to check the crude oil trend.

Since it is always good to follow the oil trend when oil trading, in Multiple Time Frame Oil Analysis, the longer chart timeframe gives us the direction of the long term crude oil trend.

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

Remember there is a popular saying by many oil traders that says: "The oil trend is your friend" - never go against the oil trend when trading.

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

Examples of how each type of Oil trader uses multiple Timeframes Oil analysis strategy:

Crude Oil Trading Scalpers

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

A Scalper using 1 min oil chart wants to go long, checks 5 minute crude oil chart, which looks like the one below, since 5 minute oil chart show oil trend is moving up, then decides from this crude oil analysis it's ok to open a buy oil trade.

Multiple Time-frame Chart Technical Indicator

Oil Trading Day Traders

Day oil traders hold on to their open crude oil trades for a few hours but not more than a day. With the aim of making quite a number of pips profit, 30 to 60 pips.

Oil Trading day trader trading 15 minutes oil chart wants to go long, checks 1 hour crude oil chart, which looks like the oil chart below, since 1 hour oil chart shows oil trend is moving up, then decides from this crude oil analysis it's ok to open a buy oil trade.

Multiple Timeframe Oil Trading Analysis Day Oil Trading - Multiple Timeframe Trading System

Swing Traders

Swing oil traders hold on to their open crude oil trades for a few days to a week. With the aim of making a large number of pips profit, 100 to 250 pips.

Swing trader using 1 hour oil chart wants to go short, checks 4 hour crude oil chart, which looks like the oil chart example explained below, since 4 hour oil chart shows the oil trend is moving down, then decides from this crude oil analysis it's ok to open a sell oil trade.

Multiple Timeframes on Crude Oil Chart MetaTrader 4 - Multiple Timeframes on Crude Oil Trading Chart MetaTrader 4

Position Crude Oil Traders

Position oil traders are traders who hold on to their crude oil trades for weeks or months. With the aim of making a large number of pips profit, 300 to 800 pips.

Position oil trader using the daily oil chart wants to go short, checks weekly crude oil chart, weekly looks like the oil chart example explained below, since weekly oil chart shows the oil trend is moving down, then decides from this crude oil analysis it's ok to open a sell oil trade.

Multiple Time-frames In Chart Trading

How to Define A Oil Trading Trend

Using a crude oil trading system that has 3 crude oil indicators - Moving Averages Crossover System, RSI Crude Oil Indicator & MACD Crude Oil Trading Indicator - & uses simple rules to define the crude oil trend. The rules are:

Upwards Oil Trading Trend

Both Moving Averages Moving Up

RSI Oil Indicator Above 50

MACD Oil Indicator Above Center line

Downwards Crude Oil Trading Trend

Both Moving Averages Moving Down

RSI Oil Trading Indicator Below 50

MACD Oil Indicator Below Centerline