Indices Position Trading Strategy
Example of Indices Trading Position Trade Indices Chart Timeframes
Position Stock Indices Traders
These group of indices trading are the investors that hold on to their trades for weeks or months. With the objective of making a large number of pips, 300 - 1,000 pips.
Position indices trader using the daily chart timeframe wants to go short, checks weekly indices chart timeframe, weekly indices chart timeframe looks like the one below, since weekly stock indices chart shows the indices trend is going down, then decides from this technical analysis it's okay to sell.
Example of Indices Trading Position Trade Indices Chart Time-frames
Indices Position Traders using technical analysis use stock indices charts to try & attempt to predict the movement of stock indices trading price on the stock indices charts.
Indices Trading Position traders will sometimes use two or more indices chart time-frames so as to figure out the long term indices trend & short term indices trend.
How to Define A Indices Price Indices Trend for Position Trading
Using a stock indices trading system that has 3 indicators - Moving Average Crossover System, RSI and MACD and using simple rules to define the indices trend. The trading rules are:
Upwards Indices Trend
Both MAs Moving Up
RSI above 50
MACD Above Centerline
Downwards Stock Indices Trend
Both MAs Moving Down
RSI below 50
MACD Below Centerline
Multiple indices charts time-frames analysis equals using 2 chart time frames to trade stock indices trading - a shorter indices chart time-frame used for trading & a longer chart time frame to check the indices trend - chart time frames that you select for trading stock indices 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 indices chart timeframe.
Since it is always good to follow the indices trend when indices trading Position Trading, in Multiple Chart Timeframe Analysis, the longer weekly indices chart time frame gives us the direction of the long-term indices trend when Position trading using the daily Indices Chart Timeframe.
