Different Time Frames
This is a vital concept for you to understand. Chart patterns and indicators can vary substantially when you view charts over different time frames. Because of this, their signals will also vary, and your interpretation must therefore take into consideration the time frame you are looking to trade.
For example, consider the following price charts:
To the naked eye, Chart 4.8.8 appears to suggest that price action is range-bound. The October low has been breached, but the March 14 close has finished above the October low. Not a great prognosis overall, but I’d prefer some more clarity on the situation.
Chart 4.8.8. Time frames—daily chart over six months for Citigroup (2000–2001).
TC2000®.com. Courtesy of Worden Brothers ...
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