Multiple Time-Frame Analysis

Multiple time frames analysis equals using 2 chart timeframes to trade stocks - a shorter one used for trading and a longer one to check the Stocks trend.

Since it is always good to follow the 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 stocks trend will eventually save you. Also if you trade with the direction of the stocks 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 Stocks Trading and stock market investors that says; "The stocks trend is your friend" - never go against the stocks market.

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

Examples of how each type of Stocks trader uses multiple Stocks 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 minute chart, which looks like the one below, since 5 min show stocks trend is going up, then decides from this analysis it's okay to buy.

Multiple Trading Strategy That a Stock Trader Can Trade With in Scalping Trading - Scalper Trader Multiple Time Frame Trading Strategy - Multiple Time Frames on Chart Trading

Day Traders

This group holds on to their trades for a few hours but not more than a day. With the objective of making 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 stocks trend is going up, then decides from this analysis it's okay to buy

Stock Trading on Multiple Trading Charts Day Trading Strategies - Stock Trading on Multiple Trading Charts Day Trading Strategy - Day Trading Multiple Chart Timeframe Trading Strategies

Swing Traders

This group holds on to their trades for a few days to a week. With the objective of making 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 stocks example illustrated and explained below, since 4 hour shows the stocks trend is going down, then decides from this analysis it's okay to sell.

Day Traders Multiple Timeframe Stock Trading Strategy - Multiple Timeframe Stocks Trading

Position traders

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

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

Position Trader Multiple Time Frame Stocks Trading Analysis - How Do You Analyze Trading Price with Different Trading Chart Timeframes?