This article shows three chart layouts for consideration and there is a form at the end of this article where you can vote on your favorite. The idea is to settle on one that satisfies most of us. With last week’s Chart Strategy article, I switched to a chart layout with three charts covering three timeframes. The smaller charts on the left cover the long-term price action with StochClose signals and short-term Candlesticks with StochRSI. The larger line-dot chart shows closing prices only and RSI. This chart layout captures long-term perspective, medium-term setups and short-term signals in one picture.
Three Layouts for Consideration
First we have the CLASSIC BAR chart covering 260 days (one year) with a 200-day SMA, RSI and StochClose. This chart offers the most working space. I have been working with bar charts most of my life and this would be my choice if I were limited to just one timeframe.
Second, we have the three chart layout with a LINE-DOT chart as the largest. I originally opted for this chart to filter out the intraday noise and focus on closing prices. Most indicators, including the ATR Trailing Stop, are based on closing prices.
Third, we have the three chart layout with a BAR chart as the largest. The daily price bars capture the intraday price swings and means the pattern lines are a little wider, as are support and resistance levels.
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