Stock chart time frame setup

for stock chart analysis

Default time frame for your stock chart analysis is based on your type of trading.

But whatever style of trading you have - stock day trading, swing trading stock or position stock trading - you must analyze more then one type of chart.

Anytime you analyze stock chart you need to see important levels of support or resistance. If you look into one stock chart time frame (say daily time frame) only and omit others, you are doing big mistake !

There is good solution.

Use 3 different stock chart time frames for your stock chart analysis.

• Your main time frame (like daily)
• One time frame with longer scale (like weekly)
• One time frame with shorter  scale (like hourly or 4-hours)

There are two reasons:

1. You will see important support and resistance levels on larger scale then is your basic one.
   
2. Smaller time frame will help you fine tune your entry point and stop loss level for your stock trade.

1. Daytraders
   
   
   • Basic chart .... 15min , 30 min, hourly
   • Longer one ... 240 min (4hours), daily
   • Shorter one ... 5min , 15 min


2. Swing traders
   
   
   • Basic chart .... daily
   • Longer one ... weekly
   • Shorter one ... hourly or 240 minute (4 hours)
   
   
3. Position traders:
   
   
   • Basic chart .... weekly
   • Longer one ... monthly
   • Shorter one ... daily or 240 minute (4 hours)

I personally have all charts on large monitor I use (1900x1200 px) on my trading computer. My stock chart analysis software is set to have more charts on one screen. Here you can see my own chart setup for stock chart analysis I do.

But you can have this set also on 2 monitors. If you have 17" LCD monitor 1280x1024 then I recommend to use 2 monitors as minimal multi monitor stock trading setup.

My multi time frame stock charts tip !

There is good description about analysis of more then one time frame in trading book from Alexander Elder, Trading for a Living in section about Triple Screen Trading System.

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