Trading the Daily Chart

Discussion in 'Trading' started by Darc, Feb 27, 2023.

  1. Darc

    Darc

    Anyone here trade using the Daily Chart. I don't mean using it for Analysis, but actually using the Daily Chart for Trading decisions. Other than Stocks, or other things in a bullish market, you're risking being too late aren't you, thus the 4 or 1 hour is more appropriate?
     
  2. Peter8519

    Peter8519

    For position trader with time horizon from weeks to months, daily chart is fine. It's not possible to hit to top or bottom even with intraday chart.
     
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  3. mervyn

    mervyn

    yes, for large position good name trading, i use daily chart and macd, golden corss etc, as simple as that.
     
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  4. bone

    bone

    Ummm…. I used to daytrade using 360 minutes.

    Also - use a Weekly for trend.

    Longer timeframes are an advantage IMO.

    I wish everyone good fortune!
     
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  5. Depends on how long you're looking to hold

     
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  6. Darc

    Darc

    The beauty of the Daily chart is the information it gives, particularly Volume analysis.
    4 hour OK. 1 hour getting a bit too pure PA but still useful. Under 1 hour and pure PA which seems to be fraught with dangers as a lot of the ES Traders here show.
     
  7. Why not eliminate time altogether and look at range charts.
     
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  8. maxinger

    maxinger


    It depends on whether you are a
    HFT, day, swing, or position trader.




    The following is just an approximation.



    HFT trading
    use ??? chart (or none)
    hold a position for a few secs/minutes
    about ??? good signals every day


    day trading
    use 5 mins chart
    hold a position for a few minutes/hours
    about 3 good signals every week



    swing trading
    use 1 or 4 hours chart
    hold a position for a few days / weeks
    about 1 good signal every month


    position trading
    use daily chart
    hold a position for a few years / decades
    about 1 good signal every year/decade



    Whatever it is, it doesn't mean
    position trader is meant for lazy people.
    It doesn't mean those who cannot concentrate for
    many hours should become a position trader.




    ________________________
     
    Last edited: Feb 27, 2023
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  9. Those last two don't seem quite right... I've used daily charts for swing trades lasting from a couple of days to a week or so for many years. I would have suggested:

    swing trading
    use 4 hours or daily chart
    hold a position for a few days / weeks...

    position trading
    use daily or weekly chart
    hold a position for a few years / decades.
     
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  10. maxinger

    maxinger


    I mentioned it was an approximation as it depends on
    which products (stocks, commodities, index futures, bonds,
    currencies, food, energy, ....) you are trading.
     
    #10     Feb 27, 2023
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