EDIT: Just for some clarity, I mean the granularity of the chart, i.e. the daily chart would make each candle represent a day, the weekly would have each candle representing a week.
The main time ranges I use for stock charts are the one day and the weekly (5 day). I use the weekly more often than anything else. Both time ranges have their uses, daily is for shorter term trading and weekly is for longer setups. Even if you're day trading you should still consult the weekly for overall trend; counter-trend trading is risky. Below is the daily and weekly chart of the SPY.
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| www.freestockcharts.com |
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| www.freestockcharts.com |
As you can see the weekly shows a lot more information. Using the weekly chart to find older resistance and support lines, trend, and high/low prices is important. The daily chart has useful information as well. The MAs on the daily are more relevant to short term traders. The daily MAs also tend to be closer to the current price so they'll exert pressure on the price before the weekly MAs.
Time plays an important part in charting. A trend that has been around for ten weeks is stronger than a trend that has been around for five. Likewise MAs on the weekly tend to be stronger than their daily chart counterparts. This makes a break of a MA, trend, or pattern on the weekly more important than a similar break on the daily. However, some of the faster patterns show up on the daily and not on the weekly. The pennant, a small triangular pattern attached to a near vertical move, tends to run its course in a few weeks and as such does not show up well on the weekly chart.
Do your own research before taking any position. I do not currently own any SPY and do not plan on buying any within the next 72 hours.
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