Forex Software — Can you relate different timeframes?

Re: Can you relate different timeframes?

2009-01-26T15:38:50Z

What would you recommend to use as beginners, short or long time charts, I want to develop simple strategies but I really don’t know how to make a simple one by long time charts I don’t know if I´m wrong but I have the idea that long charts require more elaborated analysis. is not?

Re: Can you relate different timeframes?

2009-01-24T00:54:42Z

Thank you very much for such an elaborate answer, it’s taking me a while to understand it all, and still don’t really know how to use a strategy builder, I’m basically just writing down each indicator’s way to use and advantages to see what I will do when I get into it seriously. I do get the main idea of your answer, thanks a lot!

Re: Can you relate different timeframes?

2009-01-22T06:34:44Z

Using two time frames is a common practice in the Technical Analysis. For example if you trade a trend following system you have to determine the general trend direction in one hand and in other you have to recognize the exact entry / exit levels.
Normally a long period chart is used to catch the trend. Once the trend direction and strength have been confirmed, a shorter period is used to precise the deals.

Since Forex Strategy Builder uses one chart only to perform a backtest we use indicator scaling.
Let see the next example:
EURUSD 1Hour chart
- Eneter long at the upper Bollinger band (Period 20, 2) when
EURUSD 1Day chart
- Simple MA (5) rises.

Close at: 1Hour chart Parabolic SAR.

We do this using a MA(120) on the 1Hour chart. It is almost same as MA(5) on a 1Day chart. 5 * 24 = 120

We set in Forex Strategy Builder

Market: EURUSD 1 Hour

[Opening Point of the Position]
Bollinger Bands
Enter long at the Upper Band
Smoothing method - Simple
Base price - Close
MA period - 20
Multiplier - 2
Use previous bar value - Yes

[Opening Logic Condition]
Moving Average
The Moving Average rises
Smoothing method - Simple
Base price - Close
Period - 120
Shift - 0
Use previous bar value - Yes

[Closing Point of the Position]
Parabolic SAR
Exit the market at PSAR
Starting AF - 0.02
Increment - 0.02
Maximum AF - 2

Can you relate different timeframes?

2009-01-22T03:25:55Z

I was checking on MT4 that the behavior on different timeframes is somewhat erratic for short timeframes, could a strategy include information from different timeframes?. I'm a beginner, so am I aiming a little too high to want to take two or three timeframes into account?