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SmartMA/STRATEGIES/MultiTF_Confirmation.md

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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!