BullCharts discussion: Daily vs Weekly charts

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Daily vs Weekly charts

Printed From: BullCharts Forum
Category: BullCharts
Forum Name: BullCharts discussion
Forum Discription: General discussion about getting started with BullCharts and exploring its features.
URL: http://www.bullcharts.com.au/forum/forum_posts.asp?TID=181
Printed Date: 18 May 2024 at 9:51pm
Software Version: Web Wiz Forums 9.69 - http://www.webwizforums.com

Topic: Daily vs Weekly charts

Posted By: Art Vandelay
Subject: Daily vs Weekly charts
Date Posted: 30 Mar 2005 at 8:21am

Can someone please give me their opinion on the above. I have a chart template which I am happy with in terms of the parameters. My only difficulty is whether I should run it with daily or weekly data. They both give very different outcomes. Would daily be relevant for very short term traders and weekly for longer term?

Replies:

Posted By: davkell
Date Posted: 31 Mar 2005 at 11:47pm

Daily charts are usually used for trading cycles that are profitable in days to weeks, whereas Weekly charts are used to enter trades that last weeks to months. Alexander Elder explains the difference quite well, essentially there are 3 cycles: tides, waves and ripples. Tides can be seen to be the weekly trend, waves the daily trend and ripples the intraday trends. Quote: "....traders should trade in the direction of the market tide and take advantage of the waves but ignore the ripples."

You need to determine what type of trader you are or what type of trades you wish to perform. This is determined by your risk profile, available capital, ability and time available.

Don't trade until you know the difference between Weekly & Daily charts, and if you haven't read Alexander Elder's books then, they are worth the investment.

Cheers.

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"Trade Your Way To Financial Freedom."