Which will make you richer the quickest.
(a) Monthly Charts?
(b) Weekly Charts?
(c) Daily Charts?
(d) Intraday Charts?
“Throughout history, the market’s biggest winners have adhered to weekly technical patterns much more consistently than daily patterns. For this reason, institutional investors tend to base their buy and sell decisions based entirely on weekly (and sometimes monthly) patterns.”
The general rule is that the shorter the time period of a chart, the more random noise you’ll get. That’s why experienced investors begin by looking at a weekly chart, rather than a daily chart.
The weekly chart smoothes out some of the irregularities and lets the investor see a bigger picture.
This may come as a shock to some people, but the charts work the same way in every time frame from the 1 min chart right up to the monthly chart. Some trading strategies only work on certain time frames, but a good trading strategy should work equally well on any time frame.
The smaller time frames are more volatile and set ups can be less reliable. You are also more likely to be stopped out of a trade if some price sensitive news comes out,
Jesse Stine turned $46k into $6.8 million (14,972%) in 28 months using the above information.
What are you going to do with it?
Write a comment below and let us know.
With the help of a volatility expansion and contraction indicator (mobo), a weekly chart pattern would certainly keep you in a trade longer and reduce over trading. Especially as institutions and fund managers are looking at the larger time frames when making investment decisions.