However, it is also important to look for confirmation of intermediate - term trend reversal on the shorter - term
daily chart interval.
Zooming in to the shorter - term
daily chart interval below, we see that $ TAN broke out above a month - long base of consolidation yesterday (February 13), but closed near its intraday low.
Drilling down to the shorter - term
daily chart interval below, notice how the volume was heaviest on the decline from the top of the head to the bottom of the right shoulder.
Drilling down to
the daily chart interval below, we see the 50 - day moving average (teal line) now trading above the 200 - day moving average (orange line), and both indicators are moving higher.
Drilling down to the short - term
daily chart interval, the cup and handle pattern can be more easily seen.
Dropping down to the shorter - term
daily chart interval, we also see a tight base of consolidation trading around the 50 - day moving average, with two higher lows in early and late December.
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.
Not exact matches
Since a weekly
chart is a longer - term
interval than a
daily chart, the formation of this shooting star pattern on the weekly
chart is more important than if the the same pattern occurred on a
daily chart:
Charts are updated at different
intervals (
daily, monthly, annual, monthly, or semi-regular or periodic
intervals.