Instructor's Response:
Any indicator, the MACD included, will provide valid feedback based on the data from whichever chart it is placed. That being said, we advocate the use of the Daily, the 4 hour and the 1 hour charts. We would use the Daily chart to determine the overall trend of the pair. In so doing, we would determine the direction in which we will ultimately trade the pair. Then we would use the 4 hour or the 1 hour chart to "fine tune" our entry into the direction of the Daily trend. We would do this by waiting for the pair to complete a retracement AGAINST the Daily trend on either chart and then, when the pair begins to move back in the direction of the Daily trend, we would make our entry in that direction.
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