Mixed Singnals

[raging bull]

Hello out there,

well im cracking down my trading system which works great for volatile pairs such as the gbp/yen, my only problem seems to be that since I use multiple time frames 30min / 4hr sometimes I get mixed signals, my 4hr will give me buy signal but my 30min gives me sell signals and vice versa...

my setup is as follows for both 30min/4hr frames:

default settings:

macd,
stoch(full)
psar,
heikin-ashi candlesticks (I use vttrader platform)

my entries and exits are based off of the moving average crosses
I also use trend channels to base my support and resistance

so thats it my system is simple and consistent except the mixed signals between time frames....I generally follow the 4hr trend and trade off of that and use my 30min as my entry and exits

Does anyone have any suggestions? Ive noticed however staying out of the trade altogether if my signals dont match gives me the same success rate statistically speaking than as if I was in a active trade.


What to do???

Have you tried using the 1H for entry/exit instead of the 30M? That might solve your problem, as the 1H and 4H time frames are closer.

A lot of changes occur in smaller time frames (i.e. price goes back and forth a lot more), so your signals will often be quite different between 30M and 4H.

Terry

[raging bull]

Good point, I will test it and see what happens and let you know...Do you see any other weaknesses in my system or maybe a better way to trade my system???

[raging bull]

well ive backtested using 4hr and 1hr and still get mixed signals...is this something that will always happen nothing I can do???

I think that multiple time frames will almost always give different signals. That's the nature of the beast.

I'm afraid I'm not going to be much help to refine your system. I abandoned the multiple indicators and multiple time frames because I found them confusing, probably for the same reason that you're talking about. I also used to go to a lower time frame for entry, but found that annoying, too.

So, I'm now using strictly MA crossovers, getting the signal, entering, and exiting on the same time frame.

I find it easier for me because I only have to worry about the signals for one time frame and two indicators.

Terry

[raging bull]

yea they can be confusing....I guess the best way which Im already doing is just using the 4hr candlesticke to tell me which direction the market sentiment is and just trade off of my 30min indicators (macd,psar,stoch)

[dobro]

Hey In2Blues - is your setup posted somewhere? I'd like to see it. d

Originally Posted by dobro

Hey In2Blues - is your setup posted somewhere? I'd like to see it. d

Actually, it's not my strategy.

I started with muddbuddha's strategy at Journey to Samadhi and modified it for my particular needs after reading a thread at Simpe 5 / 8 moving average crossover .

Currently, I'm testing it on a 15M chart using 5EMA and 13EMA.

I'm doing a simple crossover (buy/sell when 5 crosses 13), and experimenting with a straight 40/50 pip TP or letting it ride to the next crossover.

Terry

[raging bull]

well the system I use is actually a popular system that some pros used and I happened to stumble upon it accidentally. Its called high probability trading, using longer time frames to identify the underlying trend and use the shorter frames with indicators for entry and exit......from 4x made easy

[tonymand]

Originally Posted by raging bull

yea they can be confusing....I guess the best way which Im already doing is just using the 4hr candlesticke to tell me which direction the market sentiment is and just trade off of my 30min indicators (macd,psar,stoch)

Thats certainly what I do. In my case the 15 min frame is my action frame occasionally moving down to 5 or even 1 min in a fast moving market. The higher timeframes show me the key supply/demand areas which put me on notice in terms of any trade I may be in lower down