Trading Do Gold Position Trade with Different Chart Timeframes?
Chart Time Frames
Position Traders
These group of trading are the investors that hold on to their trades for weeks or months. With main objective of earning a big amount of pips, 300 - 1,000 pips.
A Position trader using the daily time-frame wants to open short, checks weekly chart timeframe, weekly chart time-frame looks like the one below, since weekly chart shows the market trend is moving down, then decides from the analysis it is okay to sell.
Gold Position Trading on Multiple Charts - Chart Time-Frames
Gold Position Traders using technical analysis use charts to try & attempt to predict the movement of price on the trading charts.
Gold Trading Position traders will sometimes use two or more chart time-frames so as to determine the long term trend & short term trend.
How Do I Define a Market Trend for Position Trading
Using a system that has Three indicators - Moving Average Crossover System, RSI and MACD and using simple trading rules to define the trend. The rules are:
Upwards Trend
Both MAs Moving Up
RSI above 50 Level
MACD Above Center Line
Downward Trend
Both Moving Averages Moving Down
RSI below 50 Level
MACD Below Center-Line
Multiple charts time-frames analysis equals using two chart time-frames to trade xauusd - a shorter chart time-frame used for trading & a longer chart time-frame to check the trend - chart timeframes that you select for trading price action with will depend on the type of trader you are: for Position Traders the chart time frames used for trading will be an example of daily chart time frame and weekly chart time-frame.
Since it's always good to follow the trend when gold trading Position Trading, in Multiple Time Frame Analysis, the longer weekly chart time frame gives us the direction of the long-term trend when Position trading using the daily Chart Time Frame.
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