Why Do You Use Indicators That Change Values When Period Change?

Discussion in 'Technical Analysis' started by TheRumpledOne, Oct 29, 2013.

  1. Redneck

    Redneck

    Values can be changed so whatever indicator reads the same across different periods…, but be that as it may…, I’ll play Devil’s advocate…

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    Because not all traders trade the same period

    Because not all periods fit a trader’s personality

    And price being one long continuum - what does it matter anyway

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    Note;

    Whether I use indicators or not – is not germane – there are many way to make money

    But..., I am curious to see where this goes

    RN
     
  2. What's even worse are indicators that change drastically on an intraday
    chart even when the time interval is not changed. For example, the Vix Fix does that. It will show a buy signal and if it doesn't work, the signal will
    disappear and this can happen several times a day. At the end of the day
    the chart will look like the indicator worked perfectly.
     
  3. kut2k2

    kut2k2

    You're using the word ''period" in both its correct definition as the number of bars used in an indicator formula and as an incorrect synonym for time frame.

    No wonder you're confused.

    A 20-bar indicator in the 5-minute time frame will obviously use different price data than a 20-bar indicator in the hourly time frame. So the values will be different.
     
  4. kut2k2

    kut2k2

    And the values should be different.

    A current uptrend in one time frame will be a current congestion in a second time frame and a current downtrend in a third time frame. The trading action you should take is fully dependent on the time frame you're using. A worthy indicator will indicate this fact.