Q: Hi, Arthur! Could you explain why and how to do multiple timeframe analysis? I am a novice investor.

A: The basics of technical analysis can be applied universally to intraday, daily, weekly or monthly charts. Support, resistance, trendlines, momentum and pattern analysis can all be used in the same manner.

Intraday charts offer the chance to take multiple timeframe analysis to the next level. Weekly charts can be used to establish the long-term trend as well as major support and resistance levels. Sometimes daily charts show a lot of noise. Therefore, weekly support and resistance levels are often more robust. Weekly support and resistance levels can be set to jibe with the daily charts, which can then be used to spot changes in momentum and signs of accumulation or distribution. Daily charts are best for indicators like Accumulation Distribution Line, Chaikin Money Flow and OBV. Once you have decided to take a position, this knowledge and analysis can be transferred to the intraday charts to time an entry or exit more precisely. A good entry can significantly improve the reward-to-risk ratio.

One thing to keep in mind: A day represents a specific time period with an undeniable open, high, low and close. Outside of daily price action, the open, high, low and close become more ambiguous. 5 min is a definable timeframe, but the open and close simply mark the beginning and end of that time period without a break in between. The daily chart marks the open as the morning, which is after a break in trading from the previous close. Weekly charts mark the open on Monday and close on Friday, which offers a set break in the action.

Cheers
Arthur Hill

Q: What would be the best way to group together stocks (in "my favorite" stocks) so that I can view particular stock charts that belong to a specific group -- my portfolio stocks, for example?

A: Although we don't currently have a grouping feature for SharpCharts favorites, you can use the "Add/Modify" command on the Favorites page to add a group identifier to the front of the Description for each Favorite. You could use a letter, a phrase, or a number -- whatever works for you! This will group the stocks together so they are easier to view.

Hope this helps,
Kellie Erlandson