Multiple Time Frame Bitcoin Strategy
Multiple timeframe bitcoin analysis equals using 2 timeframes to trade bitcoin - a shorter time-frame used for trading & a longer time-frame used to check the cryptocurrency trend.
Since it is always good to follow the bitcoin trend when btcusd crypto currency trading, in Multiple Time-frame Bitcoin Analysis, the longer time-frame gives us the direction of the long term cryptocurrency trend.
If the long-term bitcoin trend direction supports the market direction of the smaller time-frame then probability of opening a profitable bitcoin trade is significantly increased. This is because even if you make a mistake the long-term btcusd crypto currency trend will eventually save you. Also if you trade with the direction of the btcusd crypto currency trend, then mostly you'll be on the winning side - this is what this Multiple Time-frame Cryptocurrency Analysis is all about.
Remember there's a popular saying by many btcusd crypto currency traders that says: "The btcusd crypto currency trend is your best friend' - never go against the btcusd crypto currency trend when trading.
There are four different types of bitcoin traders - all these different types of bitcoin traders use different chart timeframes to trade as displayed & shown below.
Examples of how each type of Bitcoin trader uses multiple TimeFrames Bitcoin analysis trade strategy:
BTCUSD Crypto Scalpers
Scalpers hold on to their trade transactions for only a couple of minutes. Scalper btcusd crypto currency trader never holds onto a bitcoin crypto trading for more than Ten minutes. With main objective of earning a small number of pips as profit, 5 pips to 15 pips.
A Scalper using 1 min crypto chart time frame wants to open long, checks 5 minute trading chart, which looks like the one below, since 5 min cryptocurrency chart show btcusd crypto currency trend is heading upwards, then decides from this crypto analysis it's ok to open a buy bitcoin trade.
Multiple Time Frame Crypto Trading
Bitcoin Day Traders
Day bitcoin traders hold onto their open cryptocurrency trade transactions for few hours but not more than a day. With main objective of earning quite a number of pips profit: 30 - 60 pips.
BTCUSD Crypto Currency day trader 15 min crypto chart time frame wants to open long, checks 1 hour chart, which looks like the cryptocurrency chart below, since H1 chart shows bitcoin trend is heading upwards, then decides from this cryptocurrency analysis it's ok to open a buy btcusd crypto currency trade.
Multiple Time-frame Analysis Day Trading - Multiple Time-frame Trading Methodology Guide
Swing Traders
Swing btcusd crypto currency traders hold onto their open cryptocurrency trades for few days to a week. With the objective of earning a large number of pips profit: 100 - 250 pips.
Swing trader using 1 Hour chart time frame wants to go short, checks 4 hour chart, which looks like the crypto chart example shown below, since H4 chart shows the bitcoin trend is heading downwards, then decides from this cryptocurrency analysis it's ok to open a sell btcusd crypto currency trade.
Multiple Time Frame Trading - Multiple Time-frame Trading Crypto
Position BTCUSD Crypto Currency Traders
Position btcusd crypto currency traders are traders who hold onto their trades for weeks or months. With the objective of earning a large number of pips profit: 300 - 800 pips.
Position btcusd crypto currency trader using the daily cryptocurrency chart time frame wants to go short, checks week chart, weekly resembles the crypto chart example shown below, since weekly crypto chart shows the bitcoin trend is heading downwards, then decides from this cryptocurrency analysis it's ok to open a sell btcusd crypto currency trade.
Multiple Time-frame Strategy Guide
How to Define A BTCUSD Crypto Currency Trend
Using a cryptocurrency trading system that has Three cryptocurrency indicators - MAs Cross Over System, RSI Indicator & MACD Indicator - & uses simple trading guide-lines to define the cryptocurrency trend. The rules are:
Upwards Bitcoin Crypto Currency Trend
Both MAs Moving Up
RSI Bitcoin Indicator Above 50
MACD Bitcoin Indicator Above Center Line
Down-ward Bitcoin Trend
Both Moving Averages Moving Down
RSI BTCUSD Crypto Currency Indicator Below 50
MACD Bitcoin Indicator Below Centerline
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