Daily charts or Weekly charts, which one to use?

srisara · #1 15th October 2005, 12:21 PM

Friends,

I am little confused when it comes to analyse the data for the TA. Which one to use Daily Charts or the Weekly Charts or a combination of both.

Requesting Seniors (Saint, Amit, Joy, Kranthi) to put a light on this if possible with examples.

This will immensly help all the Juniors.

Satya

srisara · #2 15th October 2005, 12:33 PM

Quote:

Originally Posted by srisara

Friends,

I am little confused when it comes to analyse the data for the TA. Which one to use Daily Charts or the Weekly Charts or a combination of both.

Requesting Seniors (Saint, Amit, Joy, Kranthi) to put a light on this if possible with examples.

This will immensly help all the Juniors.

Satya

I request any seniors available in the forum to reply.. not necessarily the names i wrote.

Satya

swingtrader · #3 15th October 2005, 03:01 PM

Quote:

Originally Posted by srisara

Friends,

I am little confused when it comes to analyse the data for the TA. Which one to use Daily Charts or the Weekly Charts or a combination of both.

Requesting Seniors (Saint, Amit, Joy, Kranthi) to put a light on this if possible with examples.

This will immensly help all the Juniors.

Satya

It depends on the timeframe of your trade. If you are just swing trading you would probably look at daily charts for direction of the trade & 60 mins intraday for timing. If you are planning to trade for intermediate to long term (holding period - weeks to months) you would look at weekly charts for direction & daily charts for timing.

--SwingTrader

Traderji · #4 15th October 2005, 03:49 PM

The time frame that you use to study charts depends on your trading horizon. If you are a short-term trader who looks at end-of-day charts and have a trading horizon of less than a year, you should be using daily charts for trading. If your trading period is longer than one year, you are better off using weekly charts, which help study the market from a longer-range perspective.

Traders usually concentrate on charts made up of daily and intraday data to forecast short-term price movements. The shorter the time frame and the less compressed the data is, the more detail that is available. While long on detail, short-term charts can be volatile and contain a lot of noise. Large sudden price movements, wide high-low ranges and price gaps can affect volatility, which can distort the overall picture.

Investors usually focus on weekly and monthly charts to spot long-term trends and forecast long-term price movements. Because long-term charts cover a longer timeframe with compressed data, price movements do not appear as extreme and there is often less noise.

However, it is always best to use more than one time frame for analyzing charts. If you use daily charts for trading it would be helpful to also look at weekly charts, which help identify support and resistance levels and the direction of the major trend.

srisara · #5 15th October 2005, 04:14 PM

Quote:

Originally Posted by swingtrader

It depends on the timeframe of your trade. If you are just swing trading you would probably look at daily charts for direction of the trade & 60 mins intraday for timing. If you are planning to trade for intermediate to long term (holding period - weeks to months) you would look at weekly charts for direction & daily charts for timing.

--SwingTrader

Thansk SwingTrader,

as your name suggests, it was clearly swinging in my mind, clearing the doubts

thanks
Satya

srisara · #6 15th October 2005, 04:15 PM

Quote:

Originally Posted by Traderji

The time frame that you use to study charts depends on your trading horizon. If you are a short-term trader who looks at end-of-day charts and have a trading horizon of less than a year, you should be using daily charts for trading. If your trading period is longer than one year, you are better off using weekly charts, which help study the market from a longer-range perspective.

Traders usually concentrate on charts made up of daily and intraday data to forecast short-term price movements. The shorter the time frame and the less compressed the data is, the more detail that is available. While long on detail, short-term charts can be volatile and contain a lot of noise. Large sudden price movements, wide high-low ranges and price gaps can affect volatility, which can distort the overall picture.

Investors usually focus on weekly and monthly charts to spot long-term trends and forecast long-term price movements. Because long-term charts cover a longer timeframe with compressed data, price movements do not appear as extreme and there is often less noise.

However, it is always best to use more than one time frame for analyzing charts. If you use daily charts for trading it would be helpful to also look at weekly charts, which help identify support and resistance levels and the direction of the major trend.

Thanks Traderji,

You are always there for our rescue. Indeed, you have cleared all my doubts with one word "noise". After reading your reply, I realised it ("noise") carries lot of weight.

thanks once again.

Similar Threads for: Daily charts or Weekly charts, which one to use?
Thread	Thread Starter	Forum	Replies	Last Post
charts	meenakshee	Websites	9	14th December 2007 05:28 PM
Best Charts	sac_max	Intraday	3	24th November 2006 11:02 AM
Moving Averages in Weekly charts	karthikmarar	Technical Analysis	3	25th August 2005 01:48 PM
Significance of weekly/monthly charts?	sh50	Technical Analysis	13	17th November 2004 07:59 PM
Century Textiles-Buy or Sell(Weekly/Daily clash)	sh50	Stocks & Shares	1	23rd October 2004 10:26 AM