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Help with indicators.


Trevbeats

Question

Can someone please help me with the right forms of using indicators.

If I select,Macd or stockastic and some others indicators.

"Example"If macd is set to a day time frame, trend looks like it going up, however if I change it to other time frames from 4 hours to 1 hour to one min even it says a different story? Can someone point me in the right direction for setting indicators to get time factors correct to make a better dessions in my trades. . Is there a chart or reference to make. Sure I have them set in the right way?

Thank you.

 

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4 answers to this question

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Firstly it depends what time frame your looking to trade in

Secondly you should analyse more than one time frame.

For instance, if trading over say a 15 minute frame, I would have an mt4 profile window with four main charts. A 5 m ,15 m, 30 m and hour chart, with a smaller 1 m chart overplayed centre.

I will only trade when ALL last candles on each chart (except the 1 m chart) are same colour. This gives a far better win percentage. The 1 m chart is used to look for the ideal entry point.

 

We also use Stoch, MACD and Bolinger as corroborating indicators. Oh, and always watch out for 'head & shoulders', double mountains and remember, 'trend is your friend'

Hope that helps

 

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I like your reply Cvanci,

 

Not sure if it was for me however very usefull thank you.

 

My charting as follows : 

Macd I find well when trend is on the move up or down.

Stockastics and volume. These seem to be serving me well so just the 3 indicators put together. I have tried others but really like the outcome of those 3. 

Here is a thought I need help with if you can?

When every I place a trade mainly Pairs currency ,Indices, Oil and gold, Oil latley has been very tricky alas... but mainley pairs is my game at this time : This might change though??

 

Ok so I always start with daily, then look at the 4 hours, 1 hour then when I am ready to pull the trigger it's 5min and 1 min..

 1 hour on the IG tv live charting is the lowest they go to when speaking charting stuff. I never make the final decission just on the daily? I guess if I want longer trends is this the right way to go and try ignore smaller time frames?.

And one just one last thing:  I am now adventuring at trading with stocks and shares, less volitile less noise and less risk to be attached them.. the other day I positioned a £50 a point on the Pru and bang it when up 30 pips! now that's the trades I love and want more of..  

 

Ideally I am more looking for long trends rather then scalpping with added price market and action, don't get me wrong I have done very well in that way as its quite exciting but as you know it has its high risk if the market turns on you!. So Should I try to adjust my statergies to longer time frames.? and does this depend on what your trading?

 

 

Thanks for your time.

 

Trev.

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Hi   That's how they work. All momentum indicators are based on the changing rates of a number of moving averages so they will always be lagging but will be tuned to which ever time frame you are using so indeed a daily will be different to a intraday. The daily momentum may not register a pullback on a intraday chart.

Try using that to your advantage eg looking for entries when the intraday momentum matches the momentum on the daily chart suggesting continuation of overall trend. 

All of these indicators have been back tested on various settings to find best match which is the default setting but there is no reason why you can't experiment with different settings yourself.

Some momentum indicators are designed to react faster than others but the trade off is more false signals.  Stolly is faster than MACD.

 

http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators

also check the Tradeciety.com website.

 

Have useful guides to the many available, many indicators produce the same result with differing input. The MACD ribbon is the same as TRIX and Know Sure Thing (KST).

 

They all indicate the past not the future but it is better to have momentum behind you rather than in front. Don't rely on a single indicator but look at 2 or 3 for confluence eg a moving average on the chart + MACD + looking at the Price Action, the candles on your chart is the best indicator.

Indicators are great fun but you can waste years playing with them looking for a holy grail, there isn't one.

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Caseynotes thank you so much for this great input. I will study them the link you sent me.

 

Please correct me if I am wrong: I feel the best way to keep trades on your side is to:

 

Read charts etc and price action? 

Watch out for news events.

Some quick in and out trades.

In and out trades :8am with a morning call ping for the indices. Sometimes signal centre gets it wrong.

Any other ideas I can add to my trading strategies sir. 

 

I do have about 2/4 indicators at one time, can I ask which ones you think is best to use, lets say long trends as I am looking in to small positions.

As for the Stolly indicator I don't seemed to have that one, I" am on the classic chart".

I guess it will be on PRT. I am getting that feeling again of I should start to learn and study the PRT charts as it will give me better options if I want to take this to the next level.....?

 

Thanks for your help buddy. 

 

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