Different time frams and indicators (again)

Beginner Questions
1

Following the advice on this site I am testing using three charts with different time frames e.g. 5 minutes, 1 hour, and 4 hours.

I am also using the VanessFX indicators on each chart i.e. MACD, Parabolic SAR, 6 EMA, 13 SMA, 120 SMA, 300 SMA.

What I want to know is this:

How do you interpret and then act on the indicators.

For example VannesaFX says that when a line like the 120 SMA is broken and a candle closes past the break you are likely to see a rally (not a direct quote).

What I don’t understand is if the line in the above example is broken of the 5 minute does this mean that there will be a short term rally or what?

I mean - using the above example again - on the 1 hour and the 4 hour the candles might be nowhere near the 120 SMA line.

So are we saying that if this happens on the 5 minute it will hold true in the short term; if it happens on the 2 hour then the rally will last longer; if it happens on the 4 hour then the rally will last even longer?

Now I am NOT talking about identifying trends - I know about that - I am just trying to figure out if the same indicators with the same settings used on different time frames mean the same thing and should produce the same result - maybe for a smaller move - but overall indicating the same action to be taken OR should the same indicators have different settings based on the timeframe being used?

I don’t seem to be able to get my head around this.

Regards,

Dale.

3

Aah - Good Afternoon my friend.

Thanks for the reply.

I hear (see) what you’re saying.

Something else I should have asked - do different indicators mean different things to different pairs or rather do different settings for different indicators apply to different pairs?

Regards,

Dale.

5

hobbit is right about the use of sma’s and longer time frames in the vanessafx system. I also noted this statement by vanessa: “The backbone of these systems is support & resistance lines.” Interpretation also relies on daily, weekly, and monthly highs and lows. Entry and exit points are very subjective.