Multiple Time Frame Analysis

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

Since it's always good to follow the 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 mistake the long term bitcoin 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 about.

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

There are 4 various 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 timeframes analysis strategy:

Scalpers

This group holds onto their trade transactions 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 minute chart wants to go long, checks 5 min trading chart, that look like the one below, since 5 min illustrate bitcoin trend is moving up, then decides from this analysis it's okay to buy.

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

Day Traders

This group holds onto their trade transactions for few hours but not more than one day. With the objective of making quite a number of pips: 30 - 100 pips.

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

Multiple Time Frame How to Trade BTCUSD with Multiple Time Frame BTCUSD Analysis Method

Swing Traders

This group holds onto their trade transactions for few days to a week. With the objective of making a big number of pips: 100 - 400 pips.

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

Multiple Time Frame How to Trade Bitcoin with Multiple Time Frame Bitcoin Analysis Method

Position traders

These are the traders who hold onto their trade transactions 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 resembles the one below, since weekly displays the bitcoin trend is moving down, then decides from this analysis it's okay to sell.

Position trader multiple Timeframe analysis