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Whenever I seem to get buried in recent price action, either because of lack of
direction or extreme volatility or I want more historical perspective, I always
back up another level. I have many monthly cash charts which I use for general
market analysis of equity indexes, interest rates, currencies, and key
commodities. For example it was the monthly charts of interest rates which
provided clues regarding the likely direction of rates and the likely extent of
the move downward. I also use weekly and a few monthly charts on commodities
which I trade right down to the spoo which I day trade using 30 min and 5 min
charts. I have a weekly chart which flashed a buy signal on gold before we even
have a base in on the daily. Aside from long term trends, the weekly charts
provide a handy way of plotting and calculating major pivots and retracements
without cluttering my shorter term charts.
Earl
-----Original Message-----
From: cb <cpbow@xxxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Saturday, September 05, 1998 7:31 PM
Subject: GEN: Trendlines,longterm (was: O.J. reply from hawaii)
>I'm curious: when you read analysts discussing markets occassionally
>you do see them talking about monthly charts and trendlines on these.
>And many times the chart looks very jagged like the monthly oj chart
>does.
>
>Have more experienced traders found very longterm trendlines to be
>useful/meaningful? The problem I am having is: On the monthly, at
>least in this case, do you really have an overall trend? Yes, each high
>was lower than the next but we are talking about individual freeze
>scares, etc. In between the prices went very low and then back up, not
>really a smooth trend down.
>
>I can see weekly charts showing a longer term trend. Up to now i've
>viewed monthly charts as only something to get historical lows and highs
>from or likely turning prices (by seeing where the peaks and vallies
>stopped). Trendlines on a monthly haven't got my attention. Am I
>omitting something I should be looking at?
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