Multiple Time-Frame Analysis

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

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

If the long term market direction supports the direction of the smaller chart timeframe then probability of being profitable is greatly increased. This is because even if you make a mistake the long term trend will eventually save you. Also if you trade with the direction of the market, then mostly you will be on winning side, this is what this analysis is all about.

Remember there is a popular saying by many Bitcoin and stock market investors that says: "The trend is your friend' - never go against the btcusd market.

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

Examples of how each type of BTCUSD trader uses multiple Bitcoin BTCUSD Trading timeframes analysis 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 min chart wants to go long, checks 5 min trading chart, that look like the one below, since 5 min illustrate trend is going up, then decides from this analysis it's okay to buy.

Multiple Time Frame How to Trade Charts with Multiple Chart Time Frames Trading Analysis Method

Day Traders

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

Day trader trading 15 min chart wants to go long, checks 1 Hour chart, that look like the one below, since 1 hour shows market trend is going up, then decides from this analysis it's okay to buy

Multiple Timeframe How to Trade BTCUSD with Multiple Timeframe BTCUSD Analysis Method

Swing Traders

This group holds on to their trades for a few days to a week. With the aim of making a large number of pips: 100 - 400 pips.

Swing trader using the 1 Hour trading chart wants to go short, checks the 4 Hour chart, that look like the trading example illustrated below, since 4 hour shows the trend is going down, then decides from this analysis it's okay to sell.

Multiple Timeframe How to Trade Bitcoin with Multiple Timeframe Trading Analysis Method

Position traders

These are the investors that hold on to their trades for weeks or months. With the aim of making a large number of pips: 300 - 1000 pips.

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

Position trader multiple Timeframe analysis