Integrated Technical Analysis
The following charts are some examples of single oscillator MTF agreements
in action in various markets.
Figure 27.39 depicts single oscillator MTF agreements comprising the MACD
5‐Min base period, pivot point support, and price confirmation on the 5‐min
AUDUSD chart. Once the 5‐min, 15‐min, and hourly moving average convergence‐
divergence (MACD) all turn bullish by crossing the zero line, any subsequent
penetration of a trendline or significant overlay represents price confirmation. In
our example, we observe a breach of a downtrend line just after price retested the
daily pivot point for the third time. Note that some traders opt to enter long at
the third pivot test instead of at the breakout of the downtrend line, that is, before
price confirmation, as the distance between the two points is fairly close and entry
at the pivot would afford traders a better reward/risk ratio (due to the smaller
stopsize required to contain risk).
Figure 27.40 depicts single oscillator MTF agreements comprising the histogram
hourly base period and its zero‐level agreements on the hourly Gold chart. A bull-
ish signal is issued once all the MACD histograms cross over the zero line. The
reverse applies for bearish signals.
Figure 27.41 depicts single oscillator MTF agreements comprising the histo-
gram hourly base period and its slope agreements on the hourly GBPUSD chart.
In this case, a bullish signal is issued once all the slopes of the MACD histogram
across all timeframes are sloping to the upside. The reverse applies for bearish
signals.fIgure 27.39 Single Oscillator MTF Agreements on the 5‐Min AUDUSD Chart.
Source: MetaTrader 4