Indices Position Trading Strategy

Example of Trading Position Trade Chart Time-Frames

Position Stock Traders

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

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

Example of Trading Position Trade Chart Time-Frames

Indices Position Traders using analysis use charts to try and attempt to predict the movement of price on the charts.

Indices Position traders will sometimes use two or more chart time frames so as to figure out the long term trend and short term trend.

How Do You Define a Price Trend for Position Trading

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

Upwards Trend

Both Moving Averages Moving Up

RSI above 50 Level

MACD Above Center Line

Downwards Stock Trend

Both MAs Moving Down

RSI below 50 Level

MACD Below Center-Line

Multiple charts timeframes analysis equals using 2 chart time frames to trade stock indices - a shorter time frame used for trading and a longer chart time-frame to check the trend - chart time frames that you select for trading price action with will depend on the type of trader you are: for Position Traders the chart timeframes used for trading will be an example of daily chart time frame & weekly chart time-frame.

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