{"id":64405,"date":"2022-10-13T12:47:22","date_gmt":"2022-10-13T16:47:22","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=64405"},"modified":"2023-08-28T12:53:33","modified_gmt":"2023-08-28T16:53:33","slug":"scott-redler-monthly-charts-technical-analysis","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/10\/13\/scott-redler-monthly-charts-technical-analysis\/","title":{"rendered":"The Power of Monthly Charts in Technical Analysis"},"content":{"rendered":"

In my technical analysis<\/a><\/strong><\/span> and moving averages lessons<\/a><\/strong><\/span>, I typically show daily charts.<\/p>\n

But sometimes it pays to pull back and look at longer time frames, like the monthly.<\/p>\n

This is especially true in a bear market, when daily charts can be full of noise without a clear trend.<\/p>\n

Let's dissect the bust in Meta<\/strong> (META), which is down over 65% from its post-Pandemic highs, using a monthly chart.<\/p>\n

Positions Disclosure: Scott J. Redler is long AAPL, MBIO, PTON, QQQ, SPY, is short PTON calls, SPY calls, SPY puts<\/em><\/p>\n

Here's the naked chart:<\/p>\n

\"\"<\/p>\n

Now let's break the monthly chart down step-by-step.<\/p>\n

(A): It started with the $384 top set in August 2021, marked with the “A” on the chart:<\/p>\n

\"\"<\/p>\n

(B): META fell to $344 to confirm the false breakout, and to have us on our toes for more downside.<\/p>\n

\"\"<\/p>\n

(C): META then lost the 8 and 21 month moving averages as the stock blew threw support and free-falled. Remember, each bar on this chart represents a month, so traders had plenty of chances to just book the loss and avoid more damage on the way down.<\/p>\n

\"\"<\/p>\n

(D): Next, META broke below a bear flag $190, giving us yet another sell signal.<\/p>\n

\"\"<\/p>\n

(E): Meta breaks through $154 support to approach key levels at $123 and $113.55.<\/p>\n

\"\"<\/p>\n

The lesson here is simple: watch longer time frames, especially during a bear market. Sometimes, they can clarify things in a way daily charts can't.<\/p>\n","protected":false},"excerpt":{"rendered":"

In my technical analysis and moving averages lessons, I typically show daily charts. But sometimes it pays to pull back and look at longer time frames, like the monthly. This is especially true in a bear market, when daily charts can be full of noise without a clear trend. Let’s dissect the bust in Meta (META), which is down over 65% from its post-Pandemic highs, using a monthly chart. Positions Disclosure: Scott J. Redler is long AAPL, MBIO, PTON, QQQ, SPY, is short PTON calls, SPY calls, SPY puts Here’s the naked chart: Now let’s break the monthly chart down step-by-step. (A): It started with the $384 top set in August 2021, marked with the “A” on the chart: (B): META fell to $344 to confirm the false breakout, and to have us on our toes for more downside. (C): META then lost the 8 and 21 month moving averages as the stock blew threw support and free-falled. Remember, each bar on this chart represents a month, so traders had plenty of chances to just book the loss and avoid more damage on the way down. (D): Next, META broke below a bear flag $190, giving us yet another sell signal. (E): Meta breaks through $154 support to approach key levels at $123 and $113.55. The lesson here is simple: watch longer time frames, especially during a bear market. Sometimes, they can clarify things in a way daily charts can’t.<\/p>\n","protected":false},"author":4,"featured_media":64429,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[76],"tags":[],"class_list":["post-64405","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-scott-redler"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=64405"}],"version-history":[{"count":7,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64405\/revisions"}],"predecessor-version":[{"id":70249,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64405\/revisions\/70249"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/64429"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=64405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=64405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=64405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}