Short-Term vs. Long-Term Charts

The data interval and time frame for a chart are determining factors as to whether you are able to accurately study data for short-term or long-term market activity. Short-term is usually considered a month or less. Creating charts to analyze short-term price activity can help you identify minor adjustments in market direction, or a short correction in price movement. Tick, second, minute, and daily data intervals are primarily used for short-term data analysis.

Long-term data analysis involves a time frame anywhere from 6 months to several years. Long-term charts are the best way to accurately identify strong bullish and bearish markets. Charts with a daily data interval can be used for long-term analysis, however, weekly and monthly charts are generally used because they provide the best overall picture of price and market activity.