Using Daily Price Charts vs. Weekly Price Charts

James Nguyen
A free video tutorial from James Nguyen
Professional Money and Lifestyle Manager
4.6 instructor rating • 2 courses • 3,683 students

Lecture description

The importance of looking at different time frames in analyzing a stock chart and why daily and weekly charts can give different trading indicators.

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Technical Analysis Made Simple

The Step-by-Step System to Making Smart Buy and Sell Decisions in Stock Trading and Investing

02:59:32 of on-demand video • Updated July 2019

  • The essentials of technical analysis and stock trading taught by an experienced hedge fund manager.
  • The powerful 3 Cs Stacking System - a step by step process to analyze stock charts and confidently know when to buy and sell
  • Master the Single most important signal in technical analysis.
  • Into the wild: Live, hands-on video walkthroughs of actual trades and stock chart analysis.
  • Watch technical analysis applied to stocks, penny stocks, Bitcoin, cryptocurrency.
  • Why charts give you an edge in investing, day trading, swing trading and options trading.
  • How to use common, consistent technical indicators like MACD, RSI and DMI to your advantage.
  • What the most common stock chart patterns really tell you.
English [Auto] I'm going to give you an example of kind of the difference between daily and weekly charts and why weekly charts for a lot of traders is just kind of like a better way to trade because it eliminates a lot of the over trading. You know it doesn't mean you can't trade daily moves. It just means you have to realize kind of what you're doing that it's that it's a shorter time frame and there's more potential for kind of like whipsaw action. You know this is Disney ticker DHS. You know if you were long it and we're trading just on this daily chart back in December you can see where you get it. You know it bro kind of like give your drone an uptrend here. It broke this uptrend broke the you know the. Some of these moving averages and you know some of these support levels if you you know if you had you know if you were kind of watching it and you had these lines and you know this is an important line obviously where it was resistance here is kind of a breakout retested held his support and then it kind of bounced around this line for a while. But you know if you know this was certainly a break of that support. But you know before that it broke that downtrend. So maybe you would have been scared and kind of like stopped it out of your position and that's reasonable. But you know it's a year if you are trading daily right. And the way you do it is you protect yourself by getting out of this position and see how it handled the retest of that line. So if it was if the child was turning bearish you basically see you know kind of retest its line fail and then just keep going down making new lows instead it broke above and started kind of a more of a bullish formation. But what I want to do is so that's the daily would have kind of stopped you out of it but you know if you are just trading weekly charts you can see where again we're going back to this weekly. So it's a much longer time frame and we go back to that kind of December late December 2018 period. That drop which was the drop we just saw on The Daily really didn't do much damage to the chart. Right. And so you know whereas the daily you might have looked at and said while the Dow was kind of a scary for you to get out of it really on a weekly basis nothing really happened in fact it actually if you do a trend line you know it would have held the support held to support certainly held the support that seemed to be important right. If you just draw a horizontal line just ballpark it like let's draw it right here because you know this is like kind of a really longer term. It wasn't even close to that. But let's say you know we draw one even here. Right. Because there is the support level here. Yeah. You know there's a lot of people would be looking at this line if they drew it know at this held a support area and so it held this support area held a trend uptrend line. So really you wouldn't have done anything if you were trading the weekly chart. And so it just kind of shows you that you know when you're even before you are trading daily charts sometimes take a step back look at the weekly chart and saying Is this really something I need to panic about or is this really something that you know on a longer term basis is as meaningful as it might feel on a short term basis.