In order to show that higher - frequency trading does not equate to higher overall profits, let's look at a hypothetical example of a trader who over-traded on the 4 hr charts during one month versus a trader who traded less - frequently on
the daily chart for the same month.
As a bear market evolves, follow
the daily chart for key turning points and act defensively at all times.
We have adapted it for swing trading by observing the weekly chart for trends and
the daily chart for stochastic entries.
I have practiced to trade FX in
daily chart for months and I can say that my balance stay in positive since then.
I highly recommend
a daily chart for new traders.
i work with price action in
the daily chart for big operation — minimum 100 pips each — and also intrady with the 15m time frame for multi small 20 pips each — .
This means, looking only at
the daily chart for a while, not using your phone to trade and only analyzing the charts a couple of times per day for 20 to 30 minutes each.
Moving averages yeah i find them useless on lower time frames as well but on 4 hr and
daily chart for long term trades they so far have worked.
Below is the 2 year
daily chart for the SPX which shows its 2016 bull market uptrend channel with the price action testing the bottom rail with the high, down to up volume spike on Monday.
The low end is an uptrend on
the daily chart for gold that connects the lows of $ 1.130.4 a Troy ounce set on Nov. 7, 2014 through the low of $ 1,141.6 set on March 17.
While indicators show that buying has slowed for the stock, Lang's
daily chart for Workday showed that the stock's June decline went hand - in - hand with a decline in trading volume.
The charts shown in Figures 1 and 2 show the weekly and
daily charts for ticker USO (an ETF which is designed to track the price of crude oil).
I have hitherto traded H4, H1, using some indicators to confirm my trades, and using Weekly and
Daily charts for major trends (this improved my win rate significantly) and using M5 and M1 to find entry points.
Finally, I don't expect you to take my word for any of this, instead, go look at
the daily charts for yourself, draw in the horizontal support and resistance levels and learn to spot the price action strategies that I teach.
I normally look at price action on
daily charts for +2 R targets (set and forget, so I only look at charts once a day at the close).
I combine pinbar setups with fundamental reports released around the London open and I use 4 - hour and
daily charts for trend identity analysis and a 1 - hour charts for my entrances.
Oversight of Employees including checking job duty completion,
daily charts for temps, schedule violations and inventory.
Not exact matches
For starters, take a look at the annotated
daily chart of $ EPU below, which highlights our exact buy entry point, as well as our current target price on the $ EPU:
This can be seen on the weekly
chart of Guggenheim Solar ETF ($ TAN), an ETF we recently sold
for a 44 % gain in The Wagner
Daily newsletter:
So, let's drill down to the weekly
charts of one ETF and two individual stocks that could soon be in play
for Wagner
Daily buy entry.
As shown on the
daily chart below, notice that EWH has been neatly holding near - term support of its 20 - day exponential moving average, and is now poised
for a breakout to a fresh 52 - week high:
For the sake of brevity, we will skip analysis of the Dow Jones SPDR ETF ($ DIA) because both its
daily and weekly
chart patterns are quite similar to SPY above (broke down firmly below its 50 - day moving average yesterday, and is also coming into support of its year - long uptrend line).
On the following
daily chart of the benchmark S&P 500 Index SPDR ($ SPY), a popular ETF proxy
for the broad - based S&P 500 Index, we have highlighted the reclamation of its 50 - day moving average:
Scanning
for reliable
chart patterns is obviously one of the most important factors that determines which stocks and ETFs we buy in the model portfolio of The Wagner
Daily newsletter.
Presently, there are a handful of stocks that meet my criteria
for selling short (former leading stocks blowing up), but I have not yet spotted low - risk swing trade entry points on the
daily charts.
The breakout above resistance on the weekly
chart, combined with the pullback on the
daily chart, provides
for a positive reward - risk ratio
for this ETF trade setup.
Due to the fact that
daily chart trading strategies are critical
for all traders to learn, we all need to see the most accurate and relevant
daily chart closing price.
The following
daily chart illustrates the technical setup
for this potential trade:
However, the most time - tested and trusted way
for determining a market's trend is simply to look at the
daily charts and analyze the market's price action.
We'll tell you why it does not matter later in this article, but let's first take a quick look at the
daily chart pattern of the S&P 500 SPDR ($ SPY), a popular ETF trading proxy
for the benchmark S&P 500 Index:
The technical swing trade setup
for $ MX is shown on the annotated
daily chart below:
For this reason, I always scan through a line
chart on the
daily and weekly in an attempt to identify a market that is beginning to trend or is already trending.
The PowerShares QQQ Trust ($ QQQ), an ETF trading proxy
for the Nasdaq 100 index, has a very similar
daily chart pattern:
This triple convergence of support is annotated on the
daily chart of S&P 500 SPDR ($ SPY), a popular ETF proxy
for the S&P 500 Index:
However, although such price action is bullish, the
daily chart pattern presently does not yet provide us with a clearly defined buy entry point and level
for setting a stop price.
The technical trade setup
for TZA is shown on the
daily chart below:
This bearish pattern can be clearly seen on the
daily chart of PowerShares QQQ Trust ($ QQQ), a popular ETF proxy
for trading the Nasdaq 100 Index:
Although the
daily chart has always been pivotal
for locating low - risk buy setups, my extreme focus on that single time frame was causing me to ignore the power of confirmation from longer time frames (such as weekly and monthly
charts).
The
daily chart showed that the stock was above a «golden cross,» which supported an opening buy
for 2017.
The
daily chart pattern below details our exact entries and exit prices
for the $ IBB swing trade.
This next
chart is a
daily combo
chart we've been following
for some of the US stock market indexes which is showing some interesting price action.
Note that this Scotiabank
chart (via The
Daily Shot) is a bit misleading using the ISM data
for the U.S. and Markit data
for the ROW.
As the
daily chart below illustrates, the price action of IOC was holding above its 20 - day exponential moving average (the beige line), in a narrow range,
for the preceding three weeks.
But
for now, maintaining a small percentage allocation of short / bearish exposure may help to reduce overall portfolio risk by basically «hedging» until / unless the downtrend from the September 2012 highs is convincingly reversed by the formation of two «higher lows» and «higher highs» on the
daily charts.
# 1 Breakout from Downtrend Channel: As you can see from the
daily chart of PZZA below, the stock was within a short - term downtrend channel
for the past year.
On the
daily chart of S&P 500 SPDR ($ SPY), a popular ETF proxy
for the benchmark S&P 500 Index, we have annotated the key resistance levels to pay attention to this week:
I have been trading
daily on
daily (end of day & 3 / 5 minute
charts for scalping.
So, let's take a closer look at the
daily chart patterns of the Nasdaq 100 Index ETF ($ QQQ) and S&P 500 SPDR ($ SPY), two popular ETF proxies
for the broad market.
I must admit I do have a weakness
for MacD, and stochastics, but all these things have not helped me in being consistent, as well as having a penchant
for dwelling on the lower timeframes (even though I do a proper top down analysis starting with the
daily chart).
Although the
daily chart is useful
for seeing short - term trends, trade setups on the monthly timeframe can be more explosive, especially when they align with bullish price action on the weekly and
daily chart intervals.