Daily vs. weekly charts - Aussie Stock Forums

# Thread: Daily vs. weekly charts

1. ## Daily vs. weekly charts

Sup everyone. Sorry to bother you guys with these noobie questions and im sure i can find the answer to my query if i search
for it .But in the short time that ive been paper trading and learning about stocks and building my technical analysis skills my brain feels like its overloaded with a tonne of info + stress overload hence im being lazy and asking the qs here. long story short im reading alexander elders new book come into my trading room (have already read the previous 1). im abit confused on the triple screen method. when you want to compare for example daily and weekly charts to confirm the trend, im assuming you have to modify the formula. say for example you'r using an ema or macd histogram for a trend indicator youd have to use the appropriate time interval? this will be the same case for oscillators using daily and weekly charts? if this is the case which im assuming that brings me to "how the hell does a noobie figure out the most appropriate numbers to use in these formulas"
without so much trial and error. again sorry for the annoying qs in advance. my brain feels like its melting haha

peace out guys haha.

2. ## Re: daily vs weekly charts

oh by the way i realise i have to have a thorough understanding of what these formulas actually measure. i have a brief understanding but i have to READ more

3. ## Re: Daily vs. weekly charts

A single weekly bar is 5 daily bars.

Enjoy your ( likely --- long ) journey

4. ## Re: daily vs weekly charts

Originally Posted by darkhorse70
oh by the way i realise i have to have a thorough understanding of what these formulas actually measure. i have a brief understanding but i have to READ more

Try and get hold of Marcus Padley's blogs; he is currently publishing a series about SMSF management for noobs, in weekly installments: http://www.smh.com.au/business/by/Marcus-Padley

As far as multiple screens are concerned, yes - each has its own use, time period, planning horizon, and commensurate set of parameters. By way of example: were you to use a 200-tick EMA on a Daily chart and 40 ticks on the Weekly, they wouldn't differ by much, therefore one wouldn't tell you any more than you knew already from the other. The trick is to know what you want each chart to tell you and how you want to use it to trade.

Example: A weekly chart may tell me where a share has come from, how it's been behaving in certain months, or whether it has been following some cycles. That is useful, even when I want to trade off a Daily chart, taking advantage of swings that measure 10, 50, 100%.
For Intraday swing trades, however, I need a chart that ticks off minutes or even shorter periods.

5. ## Re: Daily vs. weekly charts

tech yea i realise a weekly is 5 dailys'. sure going to be a long journey haha. thanks pixel ill have a look at the link and yea im tryna find a trend from the weeky and get in and out through the daily byt im kind of scratching my head when it comes to using the suitable ema formulas etc in the different periods. either way ill have to read up on it and figure it ou.t

6. ## Re: Daily vs. weekly charts

Originally Posted by darkhorse70
tech yea i realise a weekly is 5 dailys'. sure going to be a long journey haha. thanks pixel ill have a look at the link and yea im tryna find a trend from the weeky and get in and out through the daily byt im kind of scratching my head when it comes to using the suitable ema formulas etc in the different periods. either way ill have to read up on it and figure it ou.t
fwiw, I'm using generally the same parameters for all time frames. That gives me comparable signals to trade off, even though I trade on different time frames - if that makes sense.

7. ## Re: Daily vs. weekly charts

that makes sense. i thought the graphs were look near identical then defeating the purpose

8. ## Re: Daily vs. weekly charts

Being a newbie in trading can be as exciting as it is terrifying.

Both a weekly and a daily chart are important as often you would be wise to look at the monthly , weekly and daily trend of a stock before investing.

I would strongly suggest that before you start trading and investing that you invest in yourself first and get some proper training . Read as many books as you can and stick to the basics.

Do a course they are usually reasonably priced and will help clear out some of the noise around the information that you see. I will not recommend any because I do not know your goals and circumstances.

Set up a proper trading plan and keep a diary or a record of your trades and the outcomes, even consider using a trading platform that will allow you to use a demo mode so you do not risk any of your capital.

Trading is not just about profits , it is about risk management and the plan should be themed on how you will manage risks , entry signals and knowing when to exit.

Try and use less indicators, seriously, less if most definitely more in my humble experience.

Play around until you find a suite that suits YOUR style and trading outcomes.

A basic set of indicators would include Volume and Volatility. There are several different indicators that represent these two basic needs and only you can determine the best fit for yourself.

On top of that an understanding of basic candle chart reading should get you off the ground.

Good luck

9. ## Re: daily vs weekly charts

Originally Posted by pixel
...

Example: A weekly chart may tell me where a share has come from, how it's been behaving in certain months, or whether it has been following some cycles. That is useful, even when I want to trade off a Daily chart, taking advantage of swings that measure 10, 50, 100%.
Agree, on some stocks the weekly chart is a more stable picture.
If you get your initial entry right, be it off a daily or a weekly then you may be able to afford the wider stops that are necessary to escape the daily chart gyrations.

Below is an example of TLS using daily and weekly charts, its one stock where I find that I am better off just working off the weekly chart as the primary once the trade is on the way.

(click to expand)