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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 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 the direction of the oil market, then mostly you'll be on the winning side, this is what this analysis is all about.

Remember there is a popular saying by many Oil Trading and stock market investors that says: "The oil trend is your friend" - never go against the crude oil 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 on to 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.

Scalper Oil Trader Multiple Chart Timeframe Crude Oil Strategy - Multiple Oil Chart Time-frames Trading Scalping Oil Trading – Best Website for Crude Oil Trading Charts Technical Analysis – Learn Oil Charts Analysis - Multiple Time-frame Oil Chart Analysis

Day Traders

This group holds on to their trades for a few hours but not more than a day. With the objective 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

Oil Day Traders Multiple Crude Oil Trading Chart Timeframe Crude Oil Strategies – Trading Oil Using Multiple Crude Oil Trading Chart Time Frames - Best Website for Crude Oil Charts Technical Analysis – Learn Crude Oil Trading Charts Analysis - Multiple Time-frame Oil Chart Analysis

Swing Traders

This group holds on to their trades for a few days to a week. With the objective to make a large number of pips, 100 to 400 pips.

Swing trader using 1 hour chart wants to go short, checks 4 hour 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.

Oil Day Traders Multiple Oil Chart Timeframe Oil Strategy - Trading Oil Using Multiple Oil Trading Chart Timeframes - Multiple Time Frame Analysis Guide

Position traders

These are the investors that hold on to their trades for weeks or months. With the 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.

Position Oil Trader Multiple Crude Oil Chart Timeframe Analysis - Position Crude Oil Trading Multiple Chart Timeframes - Best Website for Crude Oil Charts Technical Analysis – Learn Oil Charts Analysis - Multiple Time-frame Oil Trading Chart Analysis

How to Define A Oil Trading Trend

Using a oil system has 3 indicators – MA 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 Crude Oil Trading Trend

Both MAs Moving Down

RSI below 50

MACD Below Centerline

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