[QuantSchool] is using MTF a good idea?
Posted: Thu May 30, 2024 7:10 pm
I never EVER use MTF in my strategies
the reason being is that MTF is always delayed compared to a direct indicator with bigger period.
for instance in these pictures, I used a MTF MA of period 2 but on a daily MTF on a H1 chart
and I also added a simple MA of period 48 ((24 hours per day times period of MA = 24 x 2 = 48)
and as you can see, the MTF is very delayed and late.
what I would do instead of using MTF features is to augment the period of the indicator by the same amount.
just multiply the period of your indicator by the number of bars inside a higher timeframe.
For example, instead of suing a MTF EMA of period 20 on a D1 Timeframe, use a MA of period 20x24 = 480
you will *always* have earlier signals than when using MTF
MTF is just removing information and making it thus making it less responsive
I don't see any advantage in using MTF
If you really need the "stepping" feature I would rahter recommend using a "step" indicator like the one below
the reason being is that MTF is always delayed compared to a direct indicator with bigger period.
for instance in these pictures, I used a MTF MA of period 2 but on a daily MTF on a H1 chart
and I also added a simple MA of period 48 ((24 hours per day times period of MA = 24 x 2 = 48)
and as you can see, the MTF is very delayed and late.
what I would do instead of using MTF features is to augment the period of the indicator by the same amount.
just multiply the period of your indicator by the number of bars inside a higher timeframe.
For example, instead of suing a MTF EMA of period 20 on a D1 Timeframe, use a MA of period 20x24 = 480
you will *always* have earlier signals than when using MTF
MTF is just removing information and making it thus making it less responsive
I don't see any advantage in using MTF
If you really need the "stepping" feature I would rahter recommend using a "step" indicator like the one below