Technical Analysis Plain and Simple: Charting the Markets in Your Language, Second Edition
by Michael N. Kahn
Multiple Time Frames
Technicians need to keep their perspective. By focusing only on charts matching their investment horizon, they may fail to spot changes in the major trend. For example, using daily bar charts with nine months of data could show a strong rally, while the same chart over a two-year period may show a large trading range. Wouldn’t it be good to know if the current rally is occurring at the bottom of the range, bumping up against the top of the range, or even breaking through the range completely? It certainly would help in knowing if your short-term investing is in line with the long-term trend.
Pull back from your analysis periodically to perform a sanity check. Does your strategy make sense in the larger scheme of things? ...
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