72 lines
2.3 KiB
Markdown
72 lines
2.3 KiB
Markdown
|
# Multi-Timeframe Volatility Confirmation (with SmartMA MT5)
|
||
|
|
|
||
|
|
**Concept:**
|
||
|
|
Trade only when *both* your trading timeframe *and* a higher timeframe show confirmed volatility and context alignment.
|
||
|
|
This prevents “false” breakouts or whipsaws and ensures you’re trading when the bigger picture supports your entry.
|
||
|
|
|
||
|
|
---
|
||
|
|
|
||
|
|
## Setup
|
||
|
|
|
||
|
|
- **Trading Timeframe:** 15 minutes (can use M5, M30, H1 as needed)
|
||
|
|
- **Confirmation Timeframe:** 1 hour (or H4, D1 for swing trading)
|
||
|
|
- **Indicator:** SmartMA MT5 on *both* timeframes (with default or tailored settings)
|
||
|
|
|
||
|
|
---
|
||
|
|
|
||
|
|
## Entry Rules
|
||
|
|
|
||
|
|
1. **Primary Signal:**
|
||
|
|
- On the trading timeframe (e.g. M15), look for your usual setup:
|
||
|
|
- Price breaks out of a range or hits a trend continuation pattern
|
||
|
|
- SmartMA shows “Trend” regime and is not frozen due to news
|
||
|
|
|
||
|
|
2. **Higher Timeframe Confirmation:**
|
||
|
|
- On the higher timeframe (e.g. H1), SmartMA must also indicate “Trend” regime
|
||
|
|
- SmartMA must not be frozen (no major news)
|
||
|
|
|
||
|
|
3. **Extra Filter (optional):**
|
||
|
|
- Both SmartMAs’ risk bands (±ATR) must widen (sign of strong move)
|
||
|
|
- Sessions should match (e.g., both in London or NY session)
|
||
|
|
|
||
|
|
4. **No Trade:**
|
||
|
|
- If higher timeframe is in “Range” regime, or if either timeframe is frozen due to news event.
|
||
|
|
|
||
|
|
---
|
||
|
|
|
||
|
|
## Stop Loss & Take Profit
|
||
|
|
|
||
|
|
- **Stop Loss:**
|
||
|
|
Use SmartMA’s risk band (ATR) on your entry timeframe for stop placement
|
||
|
|
- **Take Profit:**
|
||
|
|
Aim for at least 2x stop distance, or trail stop using SmartMA as market allows
|
||
|
|
|
||
|
|
---
|
||
|
|
|
||
|
|
## Example Pseudocode
|
||
|
|
|
||
|
|
If (SmartMA(tradingTF) == "Trend" AND NOT frozen) AND
|
||
|
|
(SmartMA(higherTF) == "Trend" AND NOT frozen):
|
||
|
|
If (price breaks out of range):
|
||
|
|
Enter trade
|
||
|
|
Stop = SmartMA(tradingTF) -/+ ATR(tradingTF)
|
||
|
|
TP = 2 * Stop distance
|
||
|
|
|
||
|
|
---
|
||
|
|
|
||
|
|
## Why This Works
|
||
|
|
|
||
|
|
- Reduces “noise” and avoids whipsaw trades on choppy, low-confidence setups
|
||
|
|
- Filters out signals that lack higher timeframe confirmation
|
||
|
|
- SmartMA’s context and self-explaining overlays show you why each regime is active
|
||
|
|
- Especially effective for breakout and trend continuation traders
|
||
|
|
|
||
|
|
---
|
||
|
|
|
||
|
|
**Pro tip:**
|
||
|
|
Use chart templates to view both timeframes side by side, or use a MultiTF EA/script to automate confirmation.
|
||
|
|
|
||
|
|
---
|
||
|
|
|
||
|
|
*SmartMA MT5 – Trade with the market’s real context, across timeframes!*
|