Indices Multiple Time Frame Trading Strategy
Multiple time frame indices strategy equals using 2 chart timeframes to trade indices - a shorter chart timeframe used for trading and a longer chart timeframe 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 timeframe 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 timeframe then the probability of opening a profitable indices trade is greatly increased. This is because even if you make a mistake the long term indices trend will eventually save you. Also if you trade with the direction of the indices trend, then mostly you will be on the winning side - this is what this Multiple Time Frame Stock Indices Analysis is all about.
Remember there is a popular saying by many indices 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 timeframes to trade as shown 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. The scalping indices trader never holds on to a index trade for more than ten minutes. With the objective of making small amount of pips profit, 5 to 15 pips.
A Scalper using 1 minute indices chart wants to open a buy indices trade, checks 5 minute indices chart, which looks like the one below, since 5 min indices chart show indices trend is moving up, then decides from this multiple time frame indices trading strategy it's okay to open a buy indices trade.
Technical Analysis Using Multiple Timeframes - Indices Multiple Time Frame Trading Strategy
Multiple Time Frame 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 objective of making quite a number of pips in profit, 30 - 60 pips.
Indices day trader trading 15 minute indices 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 moving up, then decides from this multiple time frame indices trading strategy it's okay to open a buy indices trade.
Multiple Indices Time Frame Analysis - Indices Multiple Time Frame Trading Strategy
Swing Traders
Swing indices traders hold on to their open stock indices trades for a few days to a week. With the objective of making a large number of pips in 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 example explained and illustrated below, since 4 hour indices chart shows the indices trend is moving down, then decides from this multiple time frame indices trading strategy it's okay to open a sell indices trade.
Trading 2 or 3 Time Frames on Stock Indices Charts - Indices Multiple Time Frame Trading Strategy
Position Indices Traders
Position indices traders are traders that hold on to their stock indices trades for weeks or months. With the objective of making a large number of pips in profit, 300 - 800 pips.
Position indices trader using the daily indices chart wants to open a sell indices trade, checks weekly indices chart, weekly looks like the stock indices chart example explained and illustrated below, since weekly indices chart shows the indices trend is moving down, then decides from this multiple time frame indices trading strategy it's okay to open a sell indices trade.
Multiple Time Frame Indices Trading Strategy - Indices Multiple Time Frame Trading Strategy
Indices Multiple Time Frame Indices Trading Strategy - Technical Analysis Using Multiple Indices Trading Timeframes - Indices Multiple Time Frame Trading Strategy - Multiple Indices Time Frame Analysis - Trading 2 or 3 Time Frames on Stock Indices Charts - Multiple Time Frame Indices Analysis
