Combine Weeklies and Dailies
posted under
Philosophy of Technical Analysis
by ceecabolos
As with all technical indicators, signals on weekly charts are always more important than those on daily charts. The best way to combine them is to use weekly signals to determine market direction and the daily signals to fine-tune entry and exit points. A daily signal is followed only when it agrees with the weekly signal. Used in that fashion, the weekly signals become trend filters for daily signals. That prevents using daily signals to trade against the prevailing trend. Two crossover systems in which this principle is especially true are MACD and Stochastics
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