Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Dogpile

Daily Charts Are Meaningless...

Recommended Posts

I stopped using daily charts a while back and must say -- its been a really nice adjustment.

 

In a nutshell, daily charts give you a bias that you just shouldn't have.

 

Admittedly, I do use info from the last 2-4 days but for that I do not need a daily chart -- I can use 15, 30, 60 and 120-mins charts just fine to get the pertinent information.

 

I think there is some use in weekly charts -- but daily charts have been rendered meaningless by too many people using them --- just my opinion ---discussion/agreement/disagreement welcome...

 

Set yourself free and don't even look at a daily chart.

Share this post


Link to post
Share on other sites

Dog,

In context of an active day-trading setup, I agree 100%. This was part of the discussion I was having with BlowFish in another thread. I agree with you completely b/c you hit the nail on the head - you could get a bearish 'feel' from the daily, pass on all long trades, and depending on how you trade, those could be very profitable trades.

 

Obviously as a swing trader, the daily/weekly, etc. are incredibly important. But as a day trader (one who does not hold positions overnight), I think the daily, weekly, etc. are useless. And the main reason is that throughout the day, there's plenty of opportunities to go short or long and to eliminate those b/c of a bias you have off the daily does not work for me.

Share this post


Link to post
Share on other sites

Of course for intraday positions they really don't do you much good. But they give you a feel for the market, at least for me. I feel more "in tune" with the market if I know where it's been and where I feel it's going. Of course that doesn't make me biased on where to place my trades, but I like to have a heads up.

Share this post


Link to post
Share on other sites
Of course that doesn't make me biased on where to place my trades, but I like to have a heads up.

 

James,

If you can ignore the daily or weekly feel and still daytrade, I say more power to you. I find that if I see a long or just feel bullish looking at the daily or weekly, I have a much harder time taking shorts intra-day.

Share this post


Link to post
Share on other sites
I stopped using daily charts a while back and must say -- its been a really nice adjustment.

 

In a nutshell, daily charts give you a bias that you just shouldn't have.

 

Admittedly, I do use info from the last 2-4 days but for that I do not need a daily chart -- I can use 15, 30, 60 and 120-mins charts just fine to get the pertinent information.

 

I think there is some use in weekly charts -- but daily charts have been rendered meaningless by too many people using them --- just my opinion ---discussion/agreement/disagreement welcome...

 

Set yourself free and don't even look at a daily chart.

 

Huh? In another thread, you mentioned that you use the Taylor Technique for your daily bias, but you don't use a daily chart? I think a daily chart and Taylor go hand-in-hand. :confused:

 

Personally, I rely on the daily chart for "bigger picture" stuff - to identify balance areas and other key levels that higher timeframe traders/investors may be looking at (especially confluence areas where levels from the daily and intraday charts line up). It's when multiple timeframes come together that you get really dynamic moves. I also examine the weekly and monthly charts, but they aren't as granular as the daily chart.

Share this post


Link to post
Share on other sites

<<I think a daily chart and Taylor go hand-in-hand. >>

 

I actually do use a daily chart for the Taylor stuff --- busted... but taylor bias only uses last few days (generally 4 days) -- and looking at a daily chart is tough not to get some overly bullish or bearish bias that extends back further than 4 days... if you are a short-term trader, it is very easy to get a bias looking at a daily chart which might show the last 60-100+ days of trading -- a time-period that has cost me money over the years -- so I try to just block it out best I can and focus on lining up the last 2-4 days and the intradays...

 

I do see some use in weekly charts actually for bigger picture stuff -- I just think the daily timeframe is the most difficult timeframe of any to make money from looking at... classic MACD & MACD histogram, 3/10 oscillator, ADX, stochastics are all (more than) useless on the daily timeframe, in my view... will often just lead you to a bias that will lead you astray...

Share this post


Link to post
Share on other sites

So it sounds like you don't require much from the daily chart - you only need to determine the Taylor bias off of the last few daily bars. That makes sense to me. However, it's not clear why the weekly charts would help you when the daily charts do not, beyond the last few bars. That is, how do the weekly charts affect your trade decisions? Also, why wouldn't you use the trend in the daily chart to increase your trade size when price moves in that direction in the lower timeframe charts (i.e., the one you trade off)? This doesn't mean that you can't take countertrend trades (scalps) relative to the daily chart though. I hope I don't appear to presumptuous with my questions, I just want to better understand your position on daily/weekly charts. :)

 

EDIT: The trend in the daily chart is also important to the Taylor Technique; for example, if the market is in a trend according to the daily chart, you will often tend to get two buy days or sells days or so instead of one. That is, the swing cycle is shifted.

Share this post


Link to post
Share on other sites

<<why wouldn't you use the trend in the daily chart to increase your trade size when price moves in that direction in the lower timeframe charts (i.e., the one you trade off)? >>

 

I guess what I was trying to say but didn't come out and say was --- I have a slight bias towards fading any trend that develops on a daily chart. I don't believe in sustainable trends on the daily chart -- I believe in choppy daily action...

 

Now, don't get me wrong -- I DO believe in trends on intraday charts so I will take full size for an intraday trade even if it lines up with a daily trend --- having said that I want to fade the daily trend. So effectively, the daily just has no bearing on my trading.

 

<<how do the weekly charts affect your trade decisions? >>

 

they don't currently. But when stepping out to this timeframe -- the indicators seem to want to speak to me. always playing around -- check this one out (buy weekly macd histogram upturn that occurs during traditional seasonal strength for second half rally --- sell Jan 31st):

 

http://bp1.blogger.com/_5h-SWVGx6Ms/RtpeUx72PHI/AAAAAAAAAZs/r0h8QTBaKho/s1600-h/MDY+Seasonal+MACD.bmp

Share this post


Link to post
Share on other sites
<<why wouldn't you use the trend in the daily chart to increase your trade size when price moves in that direction in the lower timeframe charts (i.e., the one you trade off)? >> ..........

 

 

 

Suppose I trade 3 contracts on a trade if it is in tune with the daily chart. That is, for example, the daily trend is up so I trade 3 contracts when going long. On a short signal I only trade 1.

 

1. Subconsciously I have told myself to trust my long signals 3 x's as much as my shorts. Conversely, I have told myself to distrust my short signals in such a way as to trade 1/3 the position.

 

2. If I am 1/3 less confident in my short signals, why am I taking them at all? If I believed it to be a good trade, then it should not be relocated to a lesser position size. Hence I have already added a negative bias to my trading and a self-fulfilling prophecy.

 

3. If you can't trade with the same size on both signals, why trade the lesser one? You are setting up a hierarchy for trade signals. But why trade anything less than the top of the ladder? Need more trades, or more money? TRADE MORE MARKETS. And trade them only in the direction of the trend.

 

This is the problem, form my point of view with using a daily chart to trade smaller timeframe intra-day. If you believe that trend is one of the small edges afforded the retail trader, it makes little sense to go short when the daily trend is clearly up.

 

But we know that an up trend can have down days. It can have down weeks for that matter. It takes away ones ability to make money if he is only trading on the side of the daily trend. Movement is important and that movement can be counter to the larger daily trend and still be tradable.

 

I prefer to keep my trend-frame small: 15 mins. and my trade-frame smaller: 5mins. I can thus trade counter to the larger daily trend, while still acknowledging the power of trends and fractal market structure.

 

As for the daily chart, its use in intra-day trading should be confined to support/resistance levels.

Share this post


Link to post
Share on other sites
Suppose I trade 3 contracts on a trade if it is in tune with the daily chart. That is, for example, the daily trend is up so I trade 3 contracts when going long. On a short signal I only trade 1.

 

1. Subconsciously I have told myself to trust my long signals 3 x's as much as my shorts. Conversely, I have told myself to distrust my short signals in such a way as to trade 1/3 the position.

 

2. If I am 1/3 less confident in my short signals, why am I taking them at all? If I believed it to be a good trade, then it should not be relocated to a lesser position size. Hence I have already added a negative bias to my trading and a self-fulfilling prophecy.

 

3. If you can't trade with the same size on both signals, why trade the lesser one? You are setting up a hierarchy for trade signals. But why trade anything less than the top of the ladder? Need more trades, or more money? TRADE MORE MARKETS. And trade them only in the direction of the trend.

 

This is the problem, form my point of view with using a daily chart to trade smaller timeframe intra-day. If you believe that trend is one of the small edges afforded the retail trader, it makes little sense to go short when the daily trend is clearly up.

 

But we know that an up trend can have down days. It can have down weeks for that matter. It takes away ones ability to make money if he is only trading on the side of the daily trend. Movement is important and that movement can be counter to the larger daily trend and still be tradable.

 

I prefer to keep my trend-frame small: 15 mins. and my trade-frame smaller: 5mins. I can thus trade counter to the larger daily trend, while still acknowledging the power of trends and fractal market structure.

 

As for the daily chart, its use in intra-day trading should be confined to support/resistance levels.

 

Aligning trades using multiple timeframes increases the probability of a trade versus taking a scalp trade that may be based on a single timeframe only. Why would I take a scalp trade or a less probability trade? Because based on research, the scalp trade may still have an edge, but it may not be as high as a trade that is taken with the longer timeframe trend. So I adjust trade size to compensate. For example, I would expect more profits from a trend day down that is with the longer term trend than a trend day down that is against the longer term trend. Anytime trade conditions and a trader's odds improve, whether it is by using multiple timeframes or because of increasing market volatility, for example, I will step up the leverage in my trading. I believe that knowing when to use more leverage is an important skill used by professional traders. It's sort of like doubling down in Blackjack when the odds are more in your favor. During the month of August, I definitely increased my trade size in general because of increased volatility. Increased volatility generates more profitable trades for me so I acted accordingly. I increased trade size within my risk parameters. I'm glad I did because August was my most profitable month this year thus far. I definitely operate from the point of view that most of my profits come from a few trades. How you use the daily charts is dependent on your trade plan, my point was that using the daily chart is usually advantageous, unless you are a scalp trader that only uses order flow. I use the daily charts to determine short-term to intermediate-term market condition and for support/resistance levels. But there are many other ways that it can be used profitably. For example, Dogpile uses the daily charts with the Taylor Technique. To each his own. There is no right or wrong way here. My point was that for most traders, the daily chart should be consulted.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date: 11th July 2025.   Demand For Gold Rises As Trump Announces Tariffs!   Gold prices rose significantly throughout the week as investors took advantage of the 2.50% lower entry level. Investors also return to the safe-haven asset as the US trade policy continues to escalate. As a result, investors are taking a more dovish tone. The ‘risk-off’ appetite is also something which can be seen within the stock market. The NASDAQ on Thursday took a 0.90% dive within only 30 minutes.   Trade Tensions Escalate President Trump has been teasing with new tariffs throughout the week. However, the tariffs were confirmed on Thursday. A 35% tariff on Canadian imports starting August 1st, along with 50% tariffs on copper and goods from Brazil. Some experts are advising that Brazil has been specifically targeted due to its association with the BRICS.   However, the President has not directly associated the tariffs with BRICS yet. According to President Trump, Brazil is targeting US technology companies and carrying out a ‘witch hunt’against former Brazilian President Jair Bolsonaro, a close ally who is currently facing prosecution for allegedly attempting to overturn the 2022 Brazilian election.   Although Brazil is one of the largest and fastest-growing economies in the Americas, it is not the main concern for investors. Investors are more concerned about Tariffs on Canada. The White House said it will impose a 35% tariff on Canadian imports, effective August 1st, raised from the earlier 25% rate. This covers most goods, with exceptions under USMCA and exemptions for Canadian companies producing within the US.   It is also vital for investors to note that Canada is among the US;’s top 3 trading partners. The increase was justified by Trump citing issues like the trade deficit, Canada’s handling of fentanyl trafficking, and perceived unfair trade practices.   The President is also threatening new measures against the EU. These moves caused US and European stock futures to fall nearly 1%, while the Dollar rose and commodity prices saw small gains. However, the main benefactor was Silver and Gold, which are the two best-performing metals of the day.   How Will The Fed Impact Gold? The FOMC indicated that the number of members warming up to the idea of interest rate cuts is increasing. If the Fed takes a dovish tone, the price of Gold may further rise. In the meantime, the President pushing for a 3% rate cut sparked talk of a more dovish Fed nominee next year and raised worries about future inflation.   Meanwhile, jobless claims dropped for the fourth straight week, coming in better than expected and supporting the view that the labour market remains strong after last week’s solid payroll report. Markets still expect two rate cuts this year, but rate futures show most investors see no change at the next Fed meeting. Gold is expected to finish the week mostly flat.       Gold 15-Minute Chart     If the price of Gold increases above $3,337.50, buy signals are likely to materialise again. However, the price is currently retracing, meaning traders are likely to wait for regained momentum before entering further buy trades. According to HSBC, they expect an average price of $3,215 in 2025 (up from $3,015) and $3,125 in 2026, with projections showing a volatile range between $3,100 and $3,600   Key Takeaway Points: Gold Rises on Safe-Haven Demand. Gold gained as investors reacted to rising trade tensions and market volatility. Canada Tariffs Spark Concern. A 35% tariff on Canadian imports drew attention due to Canada’s key trade role. Fed Dovish Shift Supports Gold. Growing expectations of rate cuts and Trump’s push for a 3% cut boosted the gold outlook. Gold Eyes Breakout Above $3,337.5. Price is consolidating; a move above $3,337.50 could trigger new buy signals. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Back in the early 2000s, Netflix mailed DVDs to subscribers.   It wasn’t sexy—but it was smart. No late fees. No driving to Blockbuster.   People subscribed because they were lazy. Investors bought the stock because they realized everyone else is lazy too.   Those who saw the future in that red envelope? They could’ve caught a 10,000%+ move.   Another story…   Back in the mid-2000s, Amazon launched Prime.   It wasn’t flashy—but it was fast.   Free two-day shipping. No minimums. No hassle.   People subscribed because they were impatient. Investors bought the stock because they realized everyone hates waiting.   Those who saw the future in that speedy little yellow button? They could’ve caught another 10,000%+ move.   Finally…   Back in 2011, Bitcoin was trading under $10.   It wasn’t regulated—but it worked.   No bank. No middleman. Just wallet to wallet.   People used it to send money. Investors bought it because they saw the potential.   Those who saw something glimmering in that strange orange coin? They could’ve caught a 100,000%+ move.   The people who made those calls weren’t fortune tellers. They just noticed something simple before others did.   A better way. A quiet shift. A small edge. An asymmetric bet.   The red envelope fixed late fees. The yellow button fixed waiting. The orange coin gave billions a choice.   Of course, these types of gains are rare. And they happen only once in a blue moon. That’s exactly why it’s important to notice when the conditions start to look familiar.   Not after the move. Not once it's on CNBC. But in the quiet build-up— before the surface breaks.   Enter the Blue Button Please read more here: https://altucherconfidential.com/posts/netflix-amazon-bitcoin-blue  Profits from free accurate cryptos signals: https://www.predictmag.com/ 
    • What These Attacks Look Like There are several ways you could get hacked. And the threats compound by the day.   Here’s a quick rundown:   Phishing: Fake emails from your “bank.” Click the link, give your password—game over.   Ransomware: Malware that locks your files and demands crypto. Pay up, or it’s gone.   DDoS: Overwhelm a website with traffic until it crashes. Like 10,000 bots blocking the door. Often used by nations.   Man-in-the-Middle: Hackers intercept your messages on public WiFi and read or change them.   Social Engineering: Hackers pose as IT or drop infected USB drives labeled “Payroll.”   You don’t need to be “important” to be a target.   You just need to be online.   What You Can Do (Without Buying a Bunker) You don’t have to be tech-savvy.   You just need to stop being low-hanging fruit.   Here’s how:   Use a YubiKey (physical passkey device) or Authenticator app – Ditch text message 2FA. SIM swaps are real. Hackers often have people on the inside at telecom companies.   Use a password manager (with Yubikey) – One unique password per account. Stop using your dog’s name.   Update your devices – Those annoying updates patch real security holes. Use them.   Back up your files – If ransomware hits, you don’t want your important documents held hostage.   Avoid public WiFi for sensitive stuff – Or use a VPN.   Think before you click – Emails that feel “urgent” are often fake. Go to the websites manually for confirmation.   Consider Starlink in case the internet goes down – I think it’s time for me to make the leap. Don’t Panic. Prepare. (Then Invest.)   I spent an hour in that basement bar reading about cyberattacks—and watching real-world systems fall apart like dominos.   The internet going down used to be an inconvenience. Now, it’s a warning.   Cyberwar isn’t coming. It’s here.   And the next time your internet goes out, it might not just be your router.   Don’t panic. Prepare.   And maybe keep a backup plan in your back pocket. Like a local basement bar with good bourbon—and working WiFi.   As usual, we’re on the lookout for more opportunities in cybersecurity. Stay tuned.   Author: Chris Campbell (AltucherConfidential) Profits from free accurate cryptos signals: https://www.predictmag.com/   
    • DUMBSHELL:  re the automation of corruption ---  200,000 "Science Papers" in academic journal database PubMed may have been AI-generated with errors, hallucinations and false sourcing 
    • Does any crypto exchanges get banned in your country? How's about other as Bybit, Kraken, MEXC, OKX?
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.