What is the relationship between monthly, weekly, daily, and intraday charts in technical indicators? How to choose?
In trading, monthly, weekly, daily, and intraday charts essentially observe the same market, just from different perspectives. Like a map, some people zoom out to see the big picture, while others zoom in to see the details—larger cycles provide a more macro view and slower rhythm, while smaller cycles react more quickly but also have more noise.
"Look at the big picture, act on the small" is the key rule: first confirm the trend direction on larger timeframes (such as monthly and weekly), and then use smaller timeframes (like 15-minute or 5-minute) to capture specific entry and exit points. For instance, in intraday short-term trading, one can first determine the direction using a 1-hour or 4-hour chart, and then combine it with smaller timeframes to grasp the rhythm; whereas for daily swing trades, it is necessary to refer to weekly or even monthly charts to ensure the operation aligns with the larger trend.
These cycles are not independent of each other but are nested within layers. The higher timeframe guides the direction, while the current timeframe is responsible for specific execution. This coordination helps you avoid being disturbed by short-term fluctuations. Therefore, there is no absolutely more accurate timeframe; there is only a selection that better fits the current trading rhythm—using larger timeframes to set the direction and smaller timeframes to find entry points is the practical way to coordinate timeframes.
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