Why the same asset can show conflicting signals across horizons and settings.
Signals depend on the data interval and settings used. A stock can be in a daily uptrend, a weekly downtrend, and an intraday consolidation at the same time.
| Concept | Explanation | |---|---| | Timeframe | Intraday, daily, weekly, and monthly signals answer different questions. | | Lookback length | Short settings react quickly but generate more noise; long settings react slowly but smooth more noise. | | Threshold | Changing an overbought level from 70 to 80 changes signal frequency. | | Asset behavior | A parameter suitable for a stable large-cap stock may be unsuitable for a volatile token. | | Market regime | Settings that worked in a trend may perform poorly in a range. |
Key idea: Match the signal timeframe to the decision horizon. An intraday signal may be noise to a long-term investor.