THE HAnDbook of TECHnICAl AnAlysIssingle oscillator mtf agreement
Single oscillators based on multiple timeframes (MTF) are sometimes found to be
in directional agreement, providing additional evidence for the persistence of an
existing trend. Single oscillator MTF agreement is a form of trend identification
and confirmation. It is an extremely popular approach predominantly adopted by
trend traders and trend‐following systems. An oscillator is first selected based on
its specific or desired properties. Its periodicity is then recalculated for all higher
timeframes. Bullish and bearish signals are then identified by the degree of direc-
tional oscillator agreement between the various higher timeframes. Once a bullish
or bearish signal is identified, a buy or sell trigger in the form of price confirma-
tion is required, usually by way of a breach or penetration of a technical barrier.
fIgure 27.37 Price‐Oscillator Agreements on the Daily Silver Chart.
Source: MetaTrader 4
fIgure 27.38 Price‐Oscillator Agreements on the Four‐Hour Gold Chart.
Source: MetaTrader 4