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Is Using Incomplete Weekly Charts A Chart Crime?

Published 11/19/2017, 01:21 AM
Updated 07/09/2023, 06:31 AM

Some technical purists claim it is wrong to look at a weekly chart before the week has been completed. For example, you should not be looking at weekly charts on a Tuesday and make your decision based on them because the week isn’t over yet. I understand that perspective but I don’t agree with it.

Weekly charts eliminate the noise and show the big picture. They let you see trends and ideas that you can dismiss on a daily or an intraday chart. Looking at a weekly chart on a Monday can give you a headstart of what it could be.

For example, I posted this chart of Wave Life Sciences Ltd (NASDAQ:WVE) on November 15 (Wednesday):

WVE Chart

This is how WVE’s weekly chart looks at the end of the week. The setup and the risk to reward are completely different.

WVE 2

You get the point.

NKTR Chart

Latest comments

Would use a monthly chart to day trade? I think not
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