THE HAnDbook of TECHnICAl AnAlysIsfIgure 27.41 Single Oscillator MTF Agreements on the Hourly GBPUSD Chart.
Source: MetaTrader 4Figure 27.42 essentially depicts the same chart as previously shown in
Figure 27.41 except that bullish signals are now issued once the faster‐moving
average crosses over the slower‐moving average for the MACD histogram across
all timeframes. The reverse applies for bearish signals.
multiple oscillator stf agreement
Multiple oscillators, when applied on a single timeframe (STF), have a tendency
to be in directional agreement, especially if they are constructed from the same
technical data, that is, price. As such, evidence for the persistence of an existing
trend is more reliable if the oscillators are constructed from data other than price
itself, in order to avoid or mitigate the adverse effects of multicollinearity. Ideally,
oscillators employed within a setup should be based on diverse technical data such
as volume, open interest, and sentiment, apart from the basic price data.
fIgure 27.40 Single Oscillator MTF Agreements on the Hourly Gold Chart.
Source: MetaTrader 4