Daily to Weekly Timeframe

[Chorlton]

Hello All,

I have a basic question which hopefully can be easily answered.

When swapping from a Daily to Weekly timeframe on a chart, what does the weekly bar represent or more precisely how is it calculated?

For example, if the weekly bar "closed" 25% below the high of the bar, is there any way one knowing what happened on each of the 5 daily bars without actually looking at the daily chart?

As another example, if the weekly bar closed on the High of the bar, would that automatically mean that the 5 daily bars all closed on their highs?

Thanks in advance,

Chorlton

 

[nine]

No.

Think of any bar as a track. When the period opens that prints the opening price (lhs) and then as price meanders on its merry way during the period it reaches a high at some point ... and that will alter during the period if new highs are made ... and similarly with a gradually extending low (unless the open was the high or low of the period) ... finally on the last second of the last minute of the last hour of the last day ... it closes

So you have a 4 point representation of what could be a very complex period (or u could just think of it as noise)

 

[Chorlton]

No.

Think of any bar as a track. When the period opens that prints the opening price (lhs) and then as price meanders on its merry way during the period it reaches a high at some point ... and that will alter during the period if new highs are made ... and similarly with a gradually extending low (unless the open was the high or low of the period) ... finally on the last second of the last minute of the last hour of the last day ... it closes

So you have a 4 point representation of what could be a very complex period (or u could just think of it as noise)

Hi Nine,

This is what I thought.

So would I be right in saying that if the weekly bar closed on its high, then the last daily bar (which made up the weekly bar) would have closed on its high also?

 

[nine]

Yes

 

[Chorlton]

Yes

Cheers Nine !!

Sorry for the probably stupid question but the potential "noise" could actually have an impact into my strategy, so just wanted clarification.

All the best...