Best Time Frame to Trade Metals

Multiple time-frames analysis equals using 2 chart time-frames to trade Metals Trading - a shorter one used for trading & a longer one to check the Metals 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 metals trend will eventually save you. Also if you trade with direction of metal market, then mostly you'll be on the winning side, this is what this analysis is all about.

Remember there's a popular saying by many Metals Trading and metals market investors that says: "The metals trend is your friend" 634 - never go against the metals trading market.

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

Examples of how each type of Metal trader uses multiple Metals Metal Trading timeframes analysis strategies:

Best Timeframe to Trade Metal

This group holds onto 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 min chart wants to go long, checks the 5 minute trading chart, that looks like the one below, since 5 minute explain metals trend is going up, then decides from this analysis it's okay to buy.

Best Timeframe to Trade Metal

Best Timeframe to Trade Metal

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 min trading chart wants to go long, checks the 1 H chart, that looks like the one below, since 1 hour shows market metals trend is going up, then decides from this analysis it's okay to buy

Best Timeframe to Trade Metal

Best Timeframe to Trade Metal

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 the 1 H chart wants to short sell, checks 4 H chart, which look like the metal example illustrated & explained below, since 4 hour shows the metals trend is going down, then decides from this analysis it's okay to sell.

Best Timeframe to Trade Metal

Best Timeframe to Trade Metal

These are the traders 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 the weekly chart, weekly looks like the one below, since weekly shows the metals trend is going down, then decides from this analysis it's okay to sell.

Best Timeframe to Trade Metal

How to Define A Metals Trading Trend

Using a metals trading system has 3 indicators - Moving Average Crossover System, RSI and MACD and uses simple rules to define the trend. The rules are:

Upwards trend

Both MAs Moving Up

RSI above 50

MACD Above Centerline

Downwards Metal Trading Trend

Both MAs Moving Down

RSI below 50

MACD Below Centerline

For More explanation about this system read: How to Generate Metals Trading Signals With a Metals Trading System.