Different time frams and indicators (again)

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.



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?



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.