Indices Multiple Timeframe Trading Strategy
Multiple timeframe indices strategy equals using 2 chart time-frames to trade indices - a shorter chart timeframe used for trading and a longer chart time frame used to check the stock indices trend.
Since it is always good to follow the indices trend when indices trading, in Multiple Chart Timeframe Indices Analysis, the longer chart time-frame gives us the direction of the long term stock indices trend.
If the long term indices trend direction supports the direction of the smaller chart time-frame then the probability of opening a profitable indices trade is significantly increased. This is because even if you make a mistake the long term indices 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 Timeframe Stock Indices Analysis is all about.
Remember there's a popular saying by many investors & traders that says: 'The indices trend is your friend' - never go against the indices trend when trading.
There are four different types of indices traders - all these different types of indices traders use different chart time frames to trade as displayed below.
Examples of how each type of indices trader uses multiple time frames indices strategy:
Indices Scalping
Scalpers hold on to their stock indices trades for only a few minutes. Scalping indices trader never holds on to a index trade for more than ten minutes. With the aim of making small amount of pips profit: 5 to 15 pips.
A Scalper using 1 min chart wants to open a buy indices trade, checks 5 minute chart, which looks like the one below, since 5 minute chart show indices trend is heading upward, then decides from this multiple timeframe indices strategy it's okay to open a buy indices trade.
Technical Analysis Using Multiple Timeframes - Indices Multiple Timeframe Trading Strategy
Multiple Timeframe Indices Analysis Day Stock Indices Trading
Day indices traders hold on to their open stock indices trades for a few hours but not more than a day. With the aim of making quite a number of pips profit: 30 - 60 pips.
Indices day trader trading 15 minute chart wants to open a buy indices trade, checks 1 hour indices chart, which looks like the stock indices chart below, since 1 hour indices chart shows indices trend is heading upward, then decides from this multiple timeframe indices strategy it's okay to open a buy indices trade.
Multiple Indices Time Frame Analysis - Indices Multiple Timeframe Trading Strategy
Swing Traders
Swing indices traders hold on to their open stock indices trades for a few days to a week. With the aim of making a large number of pips profit: 100 - 250 pips.
Swing trader using 1 hour indices chart wants to open a sell indices trade, checks 4 hour indices chart, which looks like the stock indices chart examples explained below, since 4 hour indices chart shows the indices trend is heading down, then decides from this multiple timeframe indices trading strategy it is okay to open a sell indices trade.
Trading 2 or 3 Time Frames on Stock Indices Charts - Indices Multiple Timeframe Trading Strategy
Position Traders
Position indices traders are traders who hold on to their stock indices trades for weeks or months. With the aim of making a large number of pips profit: 300 - 800 pips.
Position indices trader using the daily chart wants to open a sell indices trade, checks weekly indices chart, weekly looks like the stock indices chart examples explained below, since weekly indices chart shows the indices trend is heading down, then decides from this multiple timeframe indices trading strategy it is okay to open a sell indices trade.
Multiple Time Frame Indices Strategy - Indices Multiple Timeframe Trading Strategy
Indices Multiple Time Frame Indices Strategy - Technical Analysis Using Multiple Indices Time Frames - Indices Multiple Time Frame Strategy - Multiple Indices Time Frame Analysis - Trading 2 or 3 Time-frames on Stock Indices Charts - Multiple Timeframe Indices Analysis
