When I read trading literature that talks about stocks, I had always thought the daily charts referred to were similar to our forex ones.
But when I took a look at a daily chart for a stock (see IBM daily below as an example), it seems that while e.g. GBP/USD daily refers to a chart made up of bars each spanning 1 day, e.g. IBM daily refers to a chart made up of bars together spanning 1 day. I counted the bars for IBM and it looks as if the so-called stock dailies corresponds to 5 min charts in forex.
I only have experience with charts of currency pairs. Can someone experienced confirm that dailies of stocks, indexes, commodities (?), what-else are essentially similar to 5 min charts of currency pairs?
P.S.: While reading, I understand that the trading methods suggested for stock trading are generally developed for daily charts. For forex, I normally trade 1h or 4h and as I tried to adopt the stock trading methods for forex, I had thought that I might need to switch to dailies or even weekly to "compensate". But if daily charts there correspond to 5 min ones here, should I instead compensate by going lower down to the 5 min time frame instead?
Thanks for helping.
But when I took a look at a daily chart for a stock (see IBM daily below as an example), it seems that while e.g. GBP/USD daily refers to a chart made up of bars each spanning 1 day, e.g. IBM daily refers to a chart made up of bars together spanning 1 day. I counted the bars for IBM and it looks as if the so-called stock dailies corresponds to 5 min charts in forex.
I only have experience with charts of currency pairs. Can someone experienced confirm that dailies of stocks, indexes, commodities (?), what-else are essentially similar to 5 min charts of currency pairs?
P.S.: While reading, I understand that the trading methods suggested for stock trading are generally developed for daily charts. For forex, I normally trade 1h or 4h and as I tried to adopt the stock trading methods for forex, I had thought that I might need to switch to dailies or even weekly to "compensate". But if daily charts there correspond to 5 min ones here, should I instead compensate by going lower down to the 5 min time frame instead?
Thanks for helping.
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I am JuMPeR.