Multi-Timeframe Trend Direction from Candle Open and Close

Summary

This strategy defines a broad trend by comparing open and close prices across four timeframes. When all four bars close above their opens, it classifies conditions as bullish; when all close below their opens, it classifies them as bearish. The stated concept uses longer-term alignment to guide entries from shorter-term signals, but the supplied source enters long or short directly when all timeframe conditions align and exits when the opposite alignment appears.

The documentation presents the method as simple and less sensitive to short-term noise, while acknowledging that reversals may not be recognized promptly and that the short-term entry logic can perform poorly. No performance results are included. The source's configured intervals are daily, five-day, fifteen-day, and forty-five-day, which differ from some timeframe descriptions in the prose. It also uses fixed contract sizing and provides no stop-loss rule. Proposed additions include stop losses, volatility-based sizing, and testing alternative short-term signals.

Key ideas

• The strategy classifies trend direction from open-close relationships across four timeframes.
• Aligned bullish or bearish readings trigger positions, and opposite alignment closes them.
• The source uses daily, five-day, fifteen-day, and forty-five-day intervals with fixed contract sizing.
• Trend reversals, unspecified short-term signals in the prose, and missing stop-loss rules limit the approach.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.