Multiple Time-Frame Analysis

Multiple timeframes analysis equals using 2 chart timeframes to trade xauusd - a shorter one used for trading and a longer one to check the XAUUSD trend.

Since it is always good to follow the market trend, in Multiple Time Frame Analysis, the longer time-frame gives us the direction of the long-term trend.

If the long-term market direction supports the direction of the smaller chart timeframe then the probability of being profitable is greatly increased. This is because even if you make a mistake the long-term xauusd trend will eventually save you. Also if you trade with direction of the market, then mostly you will be on the winning side, this is what this analysis is all about.

Remember there is a popular saying by many XAUUSD Trading and stock market investors that says: 'The xauusd trend is your friend' - never go against the gold trading market.

There are four different types of XAUUSD traders - all these use different charts to trade as explained below.

Examples of how each type of XAUUSD trader uses multiple XAUUSD Trading time-frames analysis strategy:

Scalpers

This group holds on to their trades for only a few minutes. The scalper never holds on to a trade for more than ten minutes. With the objective of making small amounts of pips as profit, 5 - 20 pips.

A Scalper using 1 minute chart wants to go long, checks 5 min chart, which looks like the one below, since 5 min show xauusd trend is going up, then decides from this analysis it is ok to buy.

Multiple Chart Timeframe Analysis Gold Trade Strategies Tutorial

Day Traders

This group holds onto their trades for a few hours but not for more than a day. With objective to make quite a number of pips: 30 - 100 pips.

Day trader trading 15 minute chart wants to go long, checks 1 hour chart, which looks like the one below, since 1 hour shows market xauusd trend is going up, then decides from this analysis it is ok to buy

Multiple Timeframe Gold Charts Analysis - Multiple Chart Timeframe Gold Strategy PDF

Swing Traders

This group holds on to their trades for a few days to a week. With the objective to make a large number of pips: 100 - 400 pips.

Swing trader using 1 hour chart wants to go short, checks 4 hour chart, which looks like the xauusd example shown below, since 4 hour shows the xauusd trend is going down, then decides from this analysis it is ok to sell.

Multiple Timeframe XAUUSD Charts Analysis - Multiple Timeframe Gold Trading Analysis in Gold Trading

Position traders

These are the investors that hold on to their trades for weeks or months. With the objective to make a large number of pips: 300 - 1000 pips.

Position trader using daily chart wants to short sell, checks the weekly chart, weekly looks like one below, since weekly shows the xauusd trend is going down, then decides from this analysis it is ok to sell.

Learn Gold Charts Analysis - Multiple Timeframe XAUUSD Chart Analysis - Multiple Time Frames on One Chart