Using Multiple Timeframes

Multiple timeframe strategy equals using 2 chart timeframes to trade gold - a shorter time-frame used for trading and a longer time-frame used to check the trend.

Since it's always good to follow the market trend when gold trading, in Multiple Time Frame Analysis, the longer chart time frame gives us the direction of the long-term trend.

If the long-term trend direction supports the market direction of the smaller time-frame then probability of opening a profitable trade is significantly increased. This is because even if you make a mistake the long term trend will eventually save you. Also if you trade in the direction of trend, then mostly you'll be on winning side - this is what this Multiple Time Frame Analysis is all about.

Remember there's a popular saying by many traders and traders that says: "The trend is your best friend" - never go contrary the trend when trading.

There are four different types of traders - all these different types of traders use different chart timeframes to trade as shown below.

Examples of how each type of trader uses multiple time frames strategy:

Multiple Timeframe Analysis Scalping

Scalpers hold on to their trades only for a couple of minutes. The scalping trader never holds on to a trade position for more than ten minutes. With main objective of earning small amounts of pips as a profit, 5 - 15 pips.

A Scalper using 1 minute chart timeframe wants to open a buy trade, checks 5 minutes trading chart, which looks like the one below, since 5 minute chart show trend is heading up, then decides from the multiple time-frame strategy it is okay to open a buy transaction.

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Analysis Using Multiple Timeframes

Multiple Time Frame Analysis Intra-day Trading

Day traders hold on to their open trade transactions for a couple of hours but not more than a day. With main objective of earning quite an amount of pips profit, 30 to 60 pips.

Day trader 15 min chart wants to open a buy trade, checks H1 chart, which looks like the chart below, since 1H chart shows trend is heading up, then decides from the multiple time-frame strategy it's okay to open a buy trade transaction.

XAUUSD Multiple Time Frame Strategy - How Do You Trade Price with Different Chart Time frames?

Multiple Time Frame Analysis Day Trading - Multiple Time Frame Analysis

Trading two or three Time-frames on Charts

Swing traders hold on to their open trade transactions for a couple of days to a week. With main objective of earning a big number of pips profit, 100 to 250 pips.

Swing trader using 1H chart timeframe wants to open a sell trade, checks H4 chart, which looks like the chart examples shown & described below, since 4 Hour chart shows the trend is moving downwards, then decides from the multiple time-frame strategy it's okay to open a sell trade transaction.

Trading 2 or 3 Timeframes on Charts - How to Get Trading Chart Timeframes in Trading Platform

Trading 2 or 3 Time Frames on Charts - Trading 2 or 3 Timeframes on Charts

Multiple Time Frame Strategy

Position traders are traders who hold on to their trade transactions for weeks or months. With main objective of earning a big number of pips profit, 300 to 800 pips.

Position trader using the daily chart wants to open a sell trade, checks week chart, weekly resembles the chart examples shown & described below, since weekly chart shows the market trend is heading downward, then decides from the multiple time-frame strategy it is okay to open a sell trade transaction.

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Multiple Time Frame Strategy Method

Gold Multiple Time Frame Strategy - Using Multiple Gold Trading Time Frames - Gold Multiple Time Frame Strategy - Multiple Time Frame Analysis - Trading 2 or 3 Gold Time Frames on Charts - Multiple Timeframe Analysis

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