Multiple Time Frame Indices Analysis in Indices Trading

Multiple time frame indices analysis equals using 2 indices chart timeframes to trade indices - a shorter indices chart timeframe used for trading and a longer indices 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 indices 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 indices 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 indices chart timeframes to trade as shown below.

Examples of how each type of Stock Indices trader uses multiple Indices chart Time Frames analysis strategy:

Indices Scalpers

Scalpers hold on to their stock indices trades for only a few minutes. The scalper 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 go long, checks 5 minute indices chart, which looks like the one below, since 5 min show indices trend is going up, then decides from this technical analysis it's okay to buy.

Best Time Frame for Scalping Stock Indices - Multiple Time Frame Indices Analysis in Indices Trading

Best Time Frame for Day Trading Indices

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.

Stock Indices day trader trading 15 minute stock indices chart wants to go long, checks 1 hour stock indices chart, which looks like the one below, since 1 hour shows indices trend is going up, then decides from this technical analysis it's okay to buy

Best Time Frame for Intraday Trading Stock Indices - Multiple Time Frame Indices Analysis in Indices Trading

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 go short, checks 4 hour indices chart, which looks like the stock indices trading example explained and illustrated below, since 4 hour shows the indices trend is going down, then decides from this technical analysis it's okay to sell.

Best Time Frame for Swing Trading Stock Indices - Multiple Time Frame Indices Analysis in Indices Trading

Position Stock 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 go short, checks weekly indices chart, weekly looks like the one below, since weekly shows the indices trend is going down, then decides from this technical analysis it's okay to sell.

Best Time Frame for Positional Trading Stock Indices - Multiple Time Frame Indices Analysis in Indices Trading

How to Define A Indices Trend

Using a stock indices trading system that has 3 indices technical indicators - Moving Averages Crossover System, RSI Stock Indices Indicator and MACD Stock Indices Indicator - and uses simple rules to define the stock indices trend. The rules are:

Upward Stock Indices Trend

Both Moving Averages Moving Up

RSI Indices Indicator Above 50

MACD Indices Indicator Above Centerline

Downward Stock Indices Trend

Both Moving Averages Moving Down

RSI Indices Indicator Below 50

MACD Indices Indicator Below Centerline