ROI wrote: Mon Mar 10, 2025 10:10 pm
Problem with filter will be repainting, because MTF, but you can multiply by 3 like M15 as you are trading M5 and you can do that to whatever timeframe you want, but it does not look so good anymore. I tried that M5 and had M5,M15 and M30, and when all 3 was green, it was so late that...maybe something else for filter.
So glad you brought this up! It does lots of repainting on the chart. As the RSI line wiggles on and off in relation to the other lines. It's what it is.
The idea of RSI is momentum. It's like a train at the train station. When it's stopped, it's stopped. Then when it starts to go to the next station, it slowly, slowly moves, then it picks up speed... and then it's full speed... takes time!
RSI measures speed of price (change). So the smaller timeframes measure small amounts of it. The higher time frame measure larger speeds in relation to their timeframe. It takes more to move the higher timeframe. Think trying to stop a shopping trolley (M5), or trying to stop a bus (H1) by yourself? So you want momentum on your side. Why? There are so many traps out there these days. People with immense pockets and resources are shifting price to stop hunt or shift price out of the areas that look good to enter. Especially in the smaller time frames. But much harder to do in the higher time frames. Because it cost far far more to do it.
So if you have the higher timeframe on your side... you can then anticipate your trade entry....
Outside of doing this, it's a matter of experience to find the best M and W formations, reversals that are reverting to the mean, or news etc etc. Watching price along with the indicator. I tried to show this at the very beginning but it's hard to say everything clearly.