Ask Colin

How do you decide whether to use monthly, weekly or daily charts?

I use them all. I analyse any market by looking at the monthly chart first, to see the big trends, then the weekly chart to see the medium term trends and finally the daily chart.

As to which one I settle on in an individual case is really irrelevant, because I see no need to make such a decision. Once you work from the big to the small picture in the way I described, it does not matter much which you use, because you have a context for what you are looking at on any one chart.

It will then depend on what you are trying to do. The peaks and troughs may be clearer on one or the other. Fine decisions on entry or exit are usually taken on the daily chart, but with reference to the weekly as necessary. Stops can be set on either the daily or weekly, whichever shows the peaks and troughs or support and resistance levels more clearly.

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