Multiple Time-Frame Analysis

Multiple time frames analysis equals using 2 chart time-frames to trade oil - a shorter one used for trading and a longer one to check Oil trend.

Since it's always good to follow the market trend, in Multiple Time Frame Analysis, the longer timeframe gives us the direction of the long-term trend.

If the long-term market direction supports the direction of the smaller chart time frame then the probability of being profitable is greatly increased. This is because even if you make a mistake the long-term oil trend will eventually save you. Also if you trade with direction of the 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 Oil Trading and stock market investors that says: "The oil trend is your friend" - never go against the crude trading market.

There are four different types of Oil traders - all these use different oil trading charts to trade as described below.

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

Scalpers

This group holds onto their trades for only a few minutes. Scalper never holds on to a trade for more than ten minutes. With the objective of making a small amount of pips as profit, 5 - 20 pips.

A Scalper using 1 minutes chart wants to go long, checks 5 min chart, which looks like the one below, since 5 minute show oil trend is going up, then decides from this analysis it is ok to buy.

Best Website for Crude Trading Charts Technical Analysis - Learn Oil Charts Analysis

Day Traders

This group holds on to their trades for few hours but not more than a day. With the main aim to make quite a number of pips, 30 to 100 pips.

Day trader trading 15 min chart wants to go long, checks 1 hour chart, which looks like the one below, since 1 hour shows market oil trend is going up, then decides from this analysis it is ok to buy

Learn Crude Trading Charts Analysis

Swing Traders

This group holds on to their trades for a few days to a week. With aim to make a big number of pips profit, 100 to 400 pips.

Swing trader using 1 hour chart wants to go short, checks 4 hour trading chart, which looks like the oil example shown below, since 4 hour shows the oil trend is going down, then decides from this analysis it's ok to sell.

Trading Oil Using Multiple Oil Trading Chart Timeframes - Multiple Time Frame Analysis Guide

Position traders

These are traders that hold onto their trades for weeks or months. With objective to make a large number of pips, 300 to 1000 pips.

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

Learn Oil Charts Analysis - Multiple Time-frame Oil Trading Chart Analysis