October 23, 2006 at 8:15 am | | Comments 2

Multiple Timeframe Charting

I often run across a stock with a tradable pattern, but a second look will often change my mind.

This week I ran across SVU, a stock which has been rallying steadily since August. More recently, it had a breakaway gap to the upside and has since consolidated to create a very nice bull flag pattern. Here’s the chart:

SVU (Click for full size.) Chart Courtesy of TeleChart.

Ordinarily, I would be a buyer of a stock like this upon an upside breakout from this tight pattern at $33.25. However, zooming out to a longer timeframe reveals quite a bit of resistance from the past 2 years in the $34-35 range which could make a breakout somewhat short-lived as the stock encounters overhead. Here’s a longer-range chart:

SVU (Click for full size). Chart Courtesy of TeleChart.

Previous highs mark places where sellers are lurking, and staying aware of such zones can often help you select better trades to take.

There are a lot of stocks out there to trade, so there’s no need to be married to any particular one of them. At, we do the heavy lifting for you by reviewing hundreds & hundreds of stocks every night to cherry-pick the best setups. If you want to save some time locating the highest-quality chart patterns, come trade with us!

Jeff White
President, The Stock Bandit, Inc.

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  1. Multiple timeframes can be helpful and I always see to 3-4 timeframes.

  2. So true. Evaluating multiple time frames gives the big picture. I look at every stock through it’s 5 min, 15 min, 60 min, daily, weekly, and monthly charts now. It’s sure helped.

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