Joined Mar 2006
Status: THANK YOU MERLIN,TWEE and FF Team
These three indicators are all based on a moving average or a difference in price. They are designed to work in all time frames. It depends on your trading program. For instance what time frame you are trading. In my opinion, never use the cross in MACD as a signal to buy or sell. Use the MACD to measure momentum and direction of price, based on the angle and seperation and divergence to price. The same for RSI regarding divergence to price.
Moving averages are good as support and resistance and also to help determine trend.
They are all lagging though, so the real key to seeing the market is looking at price action. James16 price action section in this forum is very good at explaining this and also there are several great threads that are stickys here in this forum by Dial.. If you Google any of these topics, you can get a complete explanation of how each of these indicators work..
hope this helps.. Scott
when looking at daily/hourly charts
what period is best for
I've never ran into a system where I need to change the default period setting when looking at the hourly/daily. EJ_4H is a method I know that uses two different period in MACD to see if the weekly and 4H period agrees with each others. I don't know what the best period is ... you just have to experiment it yourself until someone come out in public with it.