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Charts

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Not applicable
Hi all. When charting, a daily, weekly or, monthly the MACD or Stochastic will show different readings eg the blue line will be below the red on hourly and on the daily it will show above the red line? Difficult to explain my question but I am new to this and don't know what period is the correct one... Yearly, monthly, daily, hourly right up to seconds... does it depends on whether you intend selling again quickly or long term? Please help.
5 REPLIES 5
kwagga
Super Contributor
Depends on your timeframe. If you invest for the longer term look at weekly and maybe daily. For day trading traders look at timeframes daily down to 3 min charts. Shorter time frame = more noise on the chart. Day traders will for instance look at 1 hour charts for a buy and sell signal and then time the buy or sell on a 5 min chart for a little more accuracy. If you're planning to buy and keep anything longer than two weeks, look at daily and bigger time frames, like weekly.
Not applicable
Tx. Makes more sense. Why do the oscillators show complete different readings on for instance 1 hour and 5 minutes. If you look at MACD signal the blue is above red and the on 5 minutes it will be blue BELOW red? L
leoridge
Contributor
Have a look at how the indicator is calculated and you will see that a shorter time frame will be different to a longer one due to the influence of the time frame ie a moving average based on 5min will be different to one based on 1 hour.
Brainware
Frequent Contributor
Have you listened to Riettes webinars ito using the Stochastic and Macd on different time frames? It is on OST and she explains it well
Not applicable
I will do. Thanx all