Multi timeframe indicators, what do you think? - page 2

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If indicator is "reliable" only on higher time frames, then is like a broken clock which shows proper time twice a day only. In my opinion indicator must be 'reliable' on multi-time frames. To be honest I never came across indicator that makes money. Trader does, with help or without indicators.
 
Darivsz Sokolowski #:
If indicator is "reliable" only on higher time frames, then is like a broken clock which shows proper time twice a day only. In my opinion indicator must be 'reliable' on multi-time frames. To be honest I never came across indicator that makes money. Trader does, with help or without indicators.

From what I'm reading, you want to day trade and make money in the same day. But that's not trading for a lot of people, a trader doesn't mind if his position is in loss on day 1 and day 2, they will wait for day 3 when they believe in and know the trend. But trend indicators aren't to make money anyway, they are just tools to catch the trend.

 
Time-frames are fractal, price-bars are fractal.

Understanding the nature of a fractal view on data is critical to understand multi-timeframes.

If you create a very simple MA strategy and feed it 200.000 bars, no matter the timeframe, you will get round about the same amount of entries.


 
Dominik Egert #:
...

If you create a very simple MA strategy and feed it 200.000 bars, no matter the timeframe, you will get round about the same amount of entries.

Yes and so what ?

 
Alain Verleyen #:

Yes and so what ?

Well, this shows time-frames are indeed fractal.

Taken price and time as x-y coordinates, you can deduct from this, the perspective a higher timeframe gives you is as insightful as a lower timeframe scope.

Thus, all that changes is the amount of time in correlation with the price movement.

So, a higher timeframe doesn't show any significant information beyond the lower timeframe. It's more or less just a summary with a shorter outlook, both in price movement and time-duration.

You can look at a higher timeframe, consider iE 2 Bars, and now scale down to lower time-frames, but you are stuck to the scope of the boundaries of the 2 bars of the higher timeframe. So a 2 bar aspect of H4, would give you an 8 bar view on H1. But. You would need two different approaches for both time-frames, one to deduct information from only 2 bars and another to deduct information from 8 bars.

You cannot apply the same logic twice, and expect it to give you more information.


EDIT:

Zoom in on a Mandelbrot and try to tell how deep you zoomed in. It's more or less impossible.
 
Dominik Egert #:
Well, this shows time-frames are indeed fractal.

Taken price and time as x-y coordinates, you can deduct from this, the perspective a higher timeframe gives you is as insightful as a lower timeframe scope.

Thus, all that changes is the amount of time in correlation with the price movement.

The market isn't just time and price, it's also volume, which is why volume indicators are nearly an essential component. If a HTF bar is expected to go bearish because the LTF pattern is moving that way, you cannot be sure based on the pattern alone that the HTF bars will become bearish because they simply "pause", or the current bar/wick moves up and down itself when the LTF bars are moving *any* direction.

If the market really was just about patterns, then we could completely disregard the economics and volume delta

 
Conor Mcnamara #:

The market isn't just time and price, it's also volume, which is why volume indicators are nearly an essential component. If a HTF bar is expected to go bearish because the LTF pattern is moving that way, you cannot be sure based on the pattern alone that the HTF bars will become bearish because they simply "pause", or the current bar/wick moves up and down itself when the LTF bars are moving *any* direction.

If the market really was just about patterns, then we could completely disregard the economics and volume delta

I know you don't believe this, and I am in a situation where I cannot give evidence, but actually, yes, you can disregard economics and volume delta.

Only proof I can "hand" you is The Big Short movie... I am actually sorry for not being able to give evidence.

You are not required to believe me, that's totally fine.

 
Dominik Egert #:
I know you don't believe this, and I am in a situation where I cannot give evidence, but actually, yes, you can disregard economics and volume delta.

Only proof I can "hand" you is The Big Short movie... I am actually sorry for not being able to give evidence.

You are not required to believe me, that's totally fine.

I don't doubt it actually, in fact, I'm starting to believe more. I recently downloaded a demo of an indicator based on market structure identification, and it was really making me think, I was assuming it would repaint all over the place, but this one did not
 
Conor Mcnamara #:
I don't doubt it actually, in fact, I'm starting to believe more. I recently downloaded a demo of an indicator based on market structure identification, and it was really making me think, I was assuming it would repaint all over the place, but this one did not
One aspect, maybe also related to time-frames, is the fact, distributed markets, or decentralized markets, like CFDs and Forex, tend to have some slight data feed shift.That's especially visible on low time-frames.

Same data feed on two brokers might have the same high value, but the candle is bullish on one and bearish on the other.

Funny thing is, with the proper analysis, your result will yield the same or very similar outcome. Which goes to show, all you require is in the data feed.

Sometimes the effect of an order placed in the market takes a bit of time to show it's effect around the globe/through the data feed.

EDIT:

I found, sometimes data feed doesn't "listen" precisely to itself, and you need to introduce a small tolerance in your analysis. On EURUSD you can see a slight offset at times, something I consider is a tolerance of 3 ticks price incorrectness.

This works also quite reliable on other assets, but this I have only tested and confirmed for Forex/Energies and Metals. Crypto, Commodities and Stocks might need some other values.
 
" ...a trader doesn't mind if his position is in loss on day 1 and day 2, they will wait for day 3 when they believe in..." looks to me like gambling and if I'm losing for 2 days in a row I don't think my indicator is "reliable".
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