Stocks Trading Multiple Time Frame Trading Strategy
Multiple time frame stocks trading strategy equals using 2 chart timeframes to trade stock trading - a shorter chart timeframe used for trading and a longer chart timeframe used to check the stocks trend.
Since it is always good to follow the stocks trend when stocks, in Multiple Time Frame Stocks Trading Analysis, the longer chart timeframe gives us the direction of the long term stocks trend.
If the long term stocks trend direction supports the direction of the smaller chart timeframe then the probability of opening a profitable stocks trade 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 trend, then mostly you will be on the winning side - this is what this Multiple Time Frame Stocks Trading Analysis is all about.
Remember there is a popular saying by many stocks traders that says; "The stocks trend is your friend" - never go against the stocks trend when trading.
There are four different types of stocks traders - all these different types of stocks traders use different chart timeframes to trade as shown below.
Examples of how each type of stocks trader uses multiple time frames stocks trading strategy:
Stocks Trading Scalping
Scalpers hold on to their stock trades for only a few minutes. The scalping stocks trader never holds on to a stocks trade for more than ten minutes. With the objective of making small amounts of pips as profit, 5 pips - 15 pips.
A Scalper using 1 minute stocks chart wants to open a buy stocks trade, checks 5 minute stock trading chart, which looks like the one below, since 5 min stocks chart show stocks trend is moving up, then decides from this multiple time frame stocks strategy it's okay to open a buy stocks trade.
Technical Analysis Using Multiple Timeframes
Stocks Trading Day Traders
Day stocks traders hold on to their open stock 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.
Stocks Trading day trader trading 15 minute stocks chart wants to open a buy stocks trade, checks 1 hour stock trading chart, which looks like the stocks chart below, since 1 hour stocks chart shows stocks trend is moving up, then decides from this multiple time frame stocks strategy it's okay to open a buy stocks trade.
Multiple Time Frame Stocks Trading Analysis Day Stock - Multiple Stocks Trading Time Frame Analysis
Swing Traders
Swing stocks traders hold on to their open stock 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 stocks chart wants to open a sell stocks trade, checks 4 hour stock trading chart, which looks like the stocks chart example illustrated and explained below, since 4 hour stocks chart shows the stocks trend is moving down, then decides from this multiple time frame stocks strategy it's okay to open a sell stocks trade.
Trading 2 or 3 Time Frames on Stock Charts - Trading 2 or 3 Time Frames on Stocks Charts
Position Stock Traders
Position stocks traders are traders that hold on to their stock trades for weeks or months. With the objective of making a large number of pips in profit, 300 - 800 pips.
Position stocks trader using the daily stocks chart wants to open a sell stocks trade, checks weekly stock trading chart, weekly looks like the stocks chart example illustrated and explained below, since weekly stocks chart shows the stocks trend is moving down, then decides from this multiple time frame stocks strategy it's okay to open a sell stocks trade.
Multiple Time Frame Stocks Strategy
Stocks Trading Multiple Time Frame Stock Trading Strategy - Using Multiple Stock Trading Timeframes - Stocks Trading Multiple Time Frame Trading Strategy - Multiple Stocks Trading Time Frame Analysis - Trading 2 or 3 Stock Time Frames on Stock Charts - Multiple Time Frame Stocks Trading Analysis
