Ask Colin

You use weekly and monthly bar charts when teaching your stock selection methods. Why not daily bar charts?

Stock selection is done exclusively with weekly and monthly charts, because on a computer, the number of daily bars you need to see the pattern in a longer term picture makes them just merge into each other. However, bear in mind that with a breakout, the weekly high will also be a daily high, so it does not matter really.

March 2008 Update
Since writing this some years ago, my ideas have changed somewhat. I now only look at monthly charts when reviewing the results of my initial scan, because they show best whether I am looking at value or growth model charts (or "nothing" charts sometimes).

Also, all my analysis and investment management work is now on weekly and monthly charts. I find this fits my time frame best. If I use daily charts, I tend to react sometimes to patterns that are in a shorter time frame and lead to poor judgements.