How To Read Stock Charts: Daily Charts Vs. Weekly Charts

if you’re new to reading stock charts
you might be wondering if it’s better to look at daily or weekly charts the
answer here is both daily charts give you a detailed look at a stock’s action
at key moments whether that’s reaction to an earnings report analyst commentary
or news reports about the company and that granular detail is important for
identifying buy points but weekly charts cut out the noise of daily fluctuations
and give you a better view of the big picture keeping you focused on
underlying trends let’s take a look at Ollie’s Bargain Outlets starting with a
daily chart look at November 21st 2017 see how the stock was climbing sharply
and rising above average volume that’s what you want to see in a lead-up to a
breakout which is the ideal time to buy we’ll cover breakouts in greater detail
in upcoming videos the daily chart here shows Ollie’s clearing a new buy point in
heavy volume okay fast-forward to June 8 2018 and the daily chart reveals a great
deal of fluctuation from session to session that volatility could have
spooked you into selling too soon but if you’d looked at a weekly chart for the
same timeframe you’d see that the longer term view smooths out the daily
volatility that followed making clear the stock’s underlying uptrend on a
weekly chart you can see that over the months Ollie’s has continued to find
support at its 10 week moving average something you wouldn’t necessarily have
spotted on a daily chart using a weekly chart can help you to sit tight and hold
on to shares that you might have otherwise gotten rid of giving the stock
time to climb higher Ollie’s is just one example of how you can use daily charts
to pinpoint the right time to buy and weekly charts to figure out whether you
should keep holding on to a stock despite daily volatility

3 thoughts on “How To Read Stock Charts: Daily Charts Vs. Weekly Charts”

  1. This is a great video about this topic, and I am using it in my own Blog

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