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Yearly, Monthly, Weekly, and Daily Technical Views

The yearly chart depicts a data series of price actions such as year high, year low, and year close. The yearly chart is often deployed for very long-term trend forecasting and analysis of the duration of generational trends (30-40 plus years).


The monthly chart focuses on the monthly data series. Many long-term investors run the monthly charts to uncover the structural trends (8-20 years) of the security or market in question.


The weekly chart is popular with intermediate-term investors as it can comfortably convey weekly data needed for medium-term trend analysis (2-5 years).


The daily chart is most useful for many traders and shorter-term investors. It provides sufficient information to analyze short-term trading swings (1-month to 12 months) for the security or market in question.


The key behind successful investing or trading remains the timeframe you are analyzing on the charts should match the time you intend to trade and invest. For example, if you plan to hold onto positions for only a few months instead of several years, you should focus on the daily and weekly charts instead of the monthly or yearly charts. Most long-term investors are not interested in short-term daily fluctuations. For investors with time horizons of many years and possibly decades, monthly and yearly charts work best.


One important caveat, although the above is a rule of thumb. One must keep in mind that using the intermediate-to-longer term charts gives the investors an advantage of focusing on the predominant longer-term trend, while at the same time avoiding the daily fluctuations and the noise associate with short-term volatility.


However, professional money managers that run multi-billion-dollar funds cannot move fast enough to react to daily swings. They are likely to utilize weekly and monthly charts to help with their buy and sell decisions. Analyzing the yearly, monthly, weekly, and daily charts may give the retail investor an edge in better understanding the short-term, intermediate-term, and long-term technical views. Since knowledge is power, this may help retail investors better compete against the professionals.


Enclosed below are the SPX yearly, monthly, weekly, and daily charts.


Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com


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