Multiple Time-frame Analysis PDF
Multiple time-frame stock trading analysis equals using 2 chart timeframes to trade stock trading - a shorter chart timeframe used for trading & a longer chart timeframe used to check the stocks trend.
Since it is always good to follow the stocks trend when stocks, in Multiple Time Frame Stocks Analysis, the longer chart timeframe gives us the direction of the long term stocks trend.
If the long term stocks trend direction supports the direction of the smaller chart time-frame then the probability of opening a profitable stocks trade is significantly increased. This is because even if you make a mistake the long term stocks trend will eventually save you. Also if you trade with direction of the trend, then mostly you'll be on the winning side - this is what this Multiple Time Frame Stocks Trading Analysis is all about.
Remember there's a popular saying by many traders and traders that says: "The stocks trend is your friend" - never go against the stocks trend when trading.
There are four different types of stocks traders - all these different types of stocks traders use different chart timeframes to trade as shown below.
Examples of how each type of Stocks trader uses multiple Time Frames Stocks trading analysis strategy:
Stock Trading Scalpers
Scalpers hold on to their stock trades for only a few minutes. Scalper stocks trader never holds on to a stocks 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 minute chart wants to go long, checks 5 minute chart, which looks like the one below, since 5 min chart show stocks trend is heading upwards, then decides from this stocks analysis it's okay to open a buy stocks trade.
Multiple Time-frame Chart Technical Indicator
Stocks Day Traders
Day stocks traders hold on to their open stock trades for a few hours but not more than a day. With the objective of making quite a number of pips profit, 30 to 60 pips.
Stocks Trading day trader trading 15 minute chart wants to go long, checks 1 hour stocks chart, which looks like the stock chart below, since 1 hour stocks chart shows stocks trend is heading upwards, then decides from this stocks analysis it's okay to open a buy stocks trade.
Multiple Time-Frame Stocks Trading Analysis Day Stock - Multiple Time Frame Trading System
Swing Traders
Swing stocks traders hold on to their open stock trades for a few days to a week. With the objective of making a large number of pips profit, 100 to 250 pips.
Swing trader using 1 hour stocks chart wants to go short, checks 4 hour stocks chart, which looks like the stock chart example illustrated and explained below, since 4 hour stocks chart shows the stocks trend is moving downwards, then decides from this stocks analysis it's okay to open a sell stocks trade.
Multiple Timeframes on Stock Chart MT4 - Multiple Timeframes on Stock Chart MT4
Position Traders
Position stocks traders are traders who hold on to their stock trades for weeks or months. With the objective of making a large number of pips profit, 300 to 800 pips.
Position stocks trader using the daily trading chart wants to short sell, checks weekly stocks chart, weekly looks like the stock chart example illustrated & described below, since weekly stocks chart shows the stocks trend is moving downwards, then decides from this stocks analysis it's okay to open a sell stocks trade.
Multiple Time-frames In Chart Trading
How to Define A Stock Trend
Using a stocks system that has 3 stocks indicators - Moving Averages Crossover System, RSI Stock Indicator & MACD Stock Indicator - & uses simple rules to define the stocks trend. The rules are:
Upward Stocks Trend
Both Moving Averages Moving Up
RSI Stocks Indicator Above 50
MACD Stocks Indicator Above Centerline
Downward Stock Trend
Both Moving Averages Moving Down
RSI Stocks Indicator Below 50
MACD Stocks Indicator Below Centerline
