Hi Edwards,
I must admit that are you doing an excellent work in educating people about forex.
I am truley amazed by the professionalism and your knowledge in this field, simply by seeing your responses in handling people's queries for any of the listes strategies on the site.
I have undergone a forex course myself, and to begin with, I want to concentrate on building up a multiple timeframe strategy.
So, what I intend to do is to identify a trade using any of the indicators in a longer period timeframe, say daily, and using the same indicator, find the same trading signal on shorter timeframes like hourly. I want to work my strategy for indicators like RSI, STOCHASTIC, EMA CROSSOVERS, MACD, ETC..
But the point I am clueless about is which periods(parameter) to choose for each indicator in different timeframes.
For instance, if I intend to use crossover of EMA(7) and EMA(20) as a system, do I need to use this system on daily timeframe to generate some signal, and then wait for the same crossover system to generate the same signal in 4 or 1 hour timeframe???
Or would I need to use different parameters for EMA crossovers in daily and hourly timeframes, in order for multiple timeframe strategy to work??
Similarly, I plan to use the default of RSI(14), stoch(5,3,3), MACD(12,26,9) etc. individually on multiple timeframes.
So, can you please advise, and clarify if I need to use the same parameters for an indicator in both timeframes?? Or if this is not the right way to go about, please suggest me a rule that allows me to best choose the correct length of indicators in different timeframes..
I hope I have been able to express myself correct to exactly what I am looking for.
Your response would be highly appreciated, and I would be obliged.
Thanking You
Vaibhav Jain