Newbie Questions - Multi Time Frames?

Hello,

Im trying to establish a trading plan, and would appreciate some guidance.
I have been attempting to work with multi time frames (4hr,1Hr,5Min) using the 4Hr time frame to identify the main trend.
Where the market price has been above or below the 200 sma for a period of time, this is the direction of the trend (above sma= long, below sma= short)
I want to use the MACD (12;26;9) to help me confirm the trend.

After establishing from the 4Hr time frame whether the market price is below (short) or above (long) the 200 sma, I then switch to the 1Hr time frame to help identify a potential trade using the MACD. But here is where I sometimes get confused?

Q: If I am looking to trade long, does the MACD line need to be in positive territory (i.e. above the zero line) and pointing up, or is it ok to trade long when the MACD lines have crossed whilst in negative territory (i.e. below the zero line) but also pointing up?

Q: By switching to the 5Min time frame to find an entry point, should the MACD lines agree with the 1H time frame?

Q: I assume the opposite would be the case for short trades?

OR - Should I just use 2 time frames and trade in the direction of the MACD from the 4Hr?

I would appreciate any guidance.
Thanks

...macd is a momemtum/ half partial trend oscilator indicator. .(.re : in your settings, the moving avg difference between the 12-26. And it also is partial extention of the stochastic...IE the stochastic cyles or pops while MACD shows the move that keeps going. That's all it is.) So, picking a direction off it is not worth your time. It is a sum zero trade. It don't matter if your above or below. Also, your pip movements vary between bars -- so you can't factor in the retracements off of macd. I am not a macd dude...its a crappy indicator like almost all the indicators. Oscillators or averages.. too fast or too slow. Bunch of crap,..... I think; if you want to use macd you may want to consider a slow moving average like 14-16 bars on a mediam time frame (If your not 100% ea'd--- like me) ... I would strongly suggest adding a trend line on the 4 hour to make sure that there is nothing in the way after you determine the direction you want go in. The 5 mn time frame on anything does not mean a hill of beans. It can point sideways for all i care.
I don't expect this will change your views. This is just my view.

Hi Airways

Here is my view and how I would answer your questions.

1. If i was using trend confirmation on a higher time frame yes I would as I would see it as the pair is in weakness, all your higher time frame analysis should be positive or negative.

2. I would have the macd cross from negative to positive ( for longs) and then be mindful of your support levels on the 5 minute chart. As above your treend should the same on all time frames even for entry


3.Yes just reverse everything for shorts but keep the same rules as longs for simplicity

I personally only use two time frames as I day trade and I like to keep it pretty simple but if I were using three I would confirm the the trend on the 4 and 1 hour charts and look for possible short term weakness in the hour chart ( for example macd cross from negative to positive for longs) then go to 5 minute chart and use the same technique for the weakness in the hour chart.

I would also confirm there is enough move available to achieve your targets without requiring a need to break the four hour chart key levels. For example if you aimed for 100 pips and major support was only 20 pips away this would cause me to be patient and wait for the next set up.

I hope this helps you, and good luck with it all.

Cheers

Dazza