Daily, Weekly, or Monthly charts? Doc whaddya think?

[Jinzpro]

I assume that daily charts are better to trade a stock in the short term (day trade) while the weekly and monthly are better for longer term trades.

Am I off? Also I assume the long range bullish/bearish indicators like MA200 which vary considerably based on the chart duration, are more relevant to the time frame the chart is based on? i.e. Breaking MA200 is a good short term indicator on a daily short while breaking MA200 is a good long term indicator on a monthly chart?

I was reading some random charts today, and I noticed that MBIA also showed a much better pincher formation on the weekly chart than the daily chart, though they were too far off.

Whatdya think Doc?

[Dr PennyStock]

You can see my template chart on the first sticky post, I use the daily chart but I always take a look on the weekly chart to see other possible support or resistance points.

The meaning of a breakout of an MA200 is equal, as you say, on a daily chart is a medium term indicator, and on a weekly chart is a long term indicator, but, is one of the strongest buy signals we can see in T/A.

[Shali]

I was going to ask the same thing. In T/A for Dummies, it says when the MA(5) crosses the MA(20) on the upside, it's a buy signal. I've been studying charts and this does look fairly reliable. However, I usually look at three month charts. I noticed this changes with the duration of the chart. Any thoughts?

[justalurker]

I believe you are pretty much right on. However, I highly suggest using about 3 different methods to determine a trend. Don't get in unless all 3 methods indicate the same thing as each individual one can be off for a number of reasons.

[Shali]

Actually, it doesn't change with the duration of the chart, but when you switch from daily to weekly. Not sure how to interpret that. What other confirming methods do you use, lurker?  I'm really new at this and have a lot to learn.