The Power of MTF indicators is when they are used in providing insight into a higher aggregation's long-term trend and range.
MTF indicators repainting behavior is minimized or eliminated when used correctly to analyze trend
(IE: looking back over a range of PRIOR non-repainting candles).
They are highly accurate and integral to every trading decision.
The problem is when MTFs are bastardized to look at the higher aggregation current candle to provide a signal or trigger.
These type of MTF indicators WILL repaint because they reference the current higher timeframe candle which will paint signals and erase signals on every tick until that higher timeframe bar closes.
At which point, it will go back and do a final repaint of all the candles with the higher aggregation price that you requested.
This means if you are using a 4hour aggregation calculation in your buy signal on a 15min chart;
it with continually repaint 16 bars until the 4hour candle closes and does its final repaint.
Newer traders are attracted to the use of the repainting MTF scripts because they haven't decided if they are daytraders or scalpers.
They are smart enough to see the issues and noise associated with trading on lower timeframes. They want the cleaner, clearer signals that higher timeframe signals provide, but their mindset is stuck on the scalper's aggregations.
The market is a tough taskmaster. To succeed. traders make a choice. They either accept that they are scalpers which means eschewing their beloved indicators in favor of pure price action.
Or they embraced their technical chartists leanings and their three timeframes.
1. They use the MTF to verify their long-term trend on their highest timeframe.
2. Then do their in-depth chart analysis with at least THREE non-collinear indicators on their trading chart which is their middle timeframe.
3. And only then, start looking at their lowest timeframe for entry using price action.
MTF indicators repainting behavior is minimized or eliminated when used correctly to analyze trend
(IE: looking back over a range of PRIOR non-repainting candles).
They are highly accurate and integral to every trading decision.
The problem is when MTFs are bastardized to look at the higher aggregation current candle to provide a signal or trigger.
These type of MTF indicators WILL repaint because they reference the current higher timeframe candle which will paint signals and erase signals on every tick until that higher timeframe bar closes.
At which point, it will go back and do a final repaint of all the candles with the higher aggregation price that you requested.
This means if you are using a 4hour aggregation calculation in your buy signal on a 15min chart;
it with continually repaint 16 bars until the 4hour candle closes and does its final repaint.
Newer traders are attracted to the use of the repainting MTF scripts because they haven't decided if they are daytraders or scalpers.
They are smart enough to see the issues and noise associated with trading on lower timeframes. They want the cleaner, clearer signals that higher timeframe signals provide, but their mindset is stuck on the scalper's aggregations.
The market is a tough taskmaster. To succeed. traders make a choice. They either accept that they are scalpers which means eschewing their beloved indicators in favor of pure price action.
Or they embraced their technical chartists leanings and their three timeframes.
1. They use the MTF to verify their long-term trend on their highest timeframe.
2. Then do their in-depth chart analysis with at least THREE non-collinear indicators on their trading chart which is their middle timeframe.
3. And only then, start looking at their lowest timeframe for entry using price action.
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