Ask Colin

Is it best to use weekly charts for monitoring a trade and daily charts for timing entry, while monthly charts generally contain too much fluctuation to be really useful?

I don't think it is as simple as that. Sometimes the picture is clearer on a daily chart because you need to see the detail. Sometimes it is clearer on a weekly or monthly chart because you need to see beyond the detail. The best approach is to analyse the monthly chart first, then the weekly and finally the daily.

This is important because of the way the longer-term trends affect the shorter-term trends. Unless, you know there is a big trend out there on the monthly chart, it will ambush you on the weekly and daily charts.

It is also useful to use different charting types to bring out various aspects of the picture. For example, I use both bar and candle charts.