Daily charts or Weekly charts, which one to use?

#1
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
 
#2
srisara said:
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
 
#3
srisara said:
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

Super Moderator
#4
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.
 
#5
swingtrader said:
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
 
#6
Traderji said:
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.
 

sudoku1

Well-Known Member
#7
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.
the choice is urs:)
 

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