Wednesday, March 21, 2012

which chart timeline to see and when


there are generally the following timescales in charts i see
- 5 year chart with 1week least count (tick size)
- 1 year chart with 1day tick
- 1 month chart with 30minute tick
- 5 day chart with 5min tick
- 1 day chart with 2min tick

5 year chart is for overall general viewpoint and not of very much practical value except for investors.

1 year chart is very good for positional traders who take monthly positions

1 month chart is best for swing traders who take positions for a few days

5 day chart is best for intraday or 1-2 days only

1 day chart is only for finding the exact timing for intraday.

just like the maxim "boss is always right"
if the smaller timeframe chart doesn't work
look at the outer timeframe chart fort he answer.


these array of chart timelines are just like the optical zoom in your SLR.

2x, 4x, 8x, 16x, 32x, 64x, 128x zoom
the more closely you want to see.....zoom in
and farther and broader you want to see......zoom out


never follow any son chart blindly without crosschecking the permission of the daddy chart.

No comments: