Technical Analysis - Chart Timeframe

[srivest]

Hi All,

I would like to have your opinion on what is a good timeframe when you look at a chart.

I've come to realize that the larger you look at, the easier is it to spot trends.

Unfortunately when I do that I seem to miss the little weekly trends, support or little details like the RSI indicating "overbought".

So I'm asking you guys your opinion on what timeframe I should rely on the most if I intend to trade on a monthly basis ? Can you also give an example ?

 

[tech/a]

Easiest to trade in decending order,over the longterm.
Each are traded differently to the next but similarly in many ways.

Weekly
Daily
Hourly
15 min
5 min.

 

[Dutchy3]

Hi srivest

First work on understanding your character. Ignore the market.

If you are blessed with a patient disposition and not having the need to fiddle around the edges ..... perhaps weekly/monthly charts

If you are somewhat impulsive, equate activity with success then perhaps daily/weekly or faster.

The patterns in the market exist is ALL TIME FRAMES and have always done so ... understand yourself first.

Alternatively jump into the market and grapple with the time frame and the market will let you know when you reconcile. You will know you are at that point as the bank account will grow year in year out

 

[bullmarket]

Hi srivest

I am an investor and not a trader but I think the principle of starting out looking at longer term charts and then zeroing in on shorter term charts applies to both investors and traders.

Personally, as I have no need for intra-day charts I tend to look at weekly charts first to hopefully identify overall medium/long term trends without the 'noise' from daily charts but when I am close to buying or selling then I look closely at the daily chart to hopefully optimise my buy/sell point.

cheers

bullmarket

 

[professor_frink]

agree with bullmarket on this one. I'm a trader and my analysis starts with a weekly chart, then move onto the daily, and then time my entry intraday.