Thanks for all the replies, VERY helpful. This thread is a great resource. Hopefully, when he has time, Pete will get a chance to look over my first post in this thread and assess how I was viewing the chart. However, I am now seeing how some of my prior assumptions can be viewed differently thanks to everyone's help here.
Multiple Time Frames?
I hold stocks for days, sometimes weeks, so I pick and choose my entries off of the daily chart. I never before considered looking at the hourly for further guidance on entries and exits. Am I correct in thinking that I should be looking at my daily chart for high volume bars, then looking at the hourly that created that bar to see how that bar was formed and get a better idea of the bigger picture?
For example, I see a high volume wide range bar with barely any upper wick on the daily, into new ground. I then view the hourly of the day and see that there was heavy selling into an up move by smart money, and a distribution phase may be starting. I choose to get out here?
Or do I need to wait for a second weak bar after that on the daily? Such as a doji on high volume/upthrust or general down move. Then look at the hourly and see the above, which confirms the move and get out.
Images below, but also extra links to larger images:
Pic 1 (daily): ht tp://oi40.tinypic.com/ogjhoh.jpg
Pic 2 (hourly): ht tp://oi41.tinypic.com/1234mza.jpg
Image 1 below shows the daily and image 2 is the hourly.
The purple arrow is showing an up move on relatively high volume (I think?) and a wide spread up bar closing at the highs. If we then look at the hourly in image 2, the purple arrow shows the top of this move. It does indeed look like huge selling volume by smart money into the up move. Do we get out on the bar that the arrow is pointing to? The down bar confirming the weakness of selling.
The green arrow on the hourly now has high volume and very wide spread bar with a bullish confirmation. Is this re-accumulation occurring? This would be a positive sign, and therefore perhaps I got out too soon? The daily for that bar appears after the purple arrow bar, and is a small upthrust on medium volume. That looks bearish on the daily.
The blue arrows on the hourly, however, appear to show more high volume selling into up moves by the smart money. I thought re-accumulation was taking place on the blue arrow bar, but now it looks like they are selling into any up move and volumes are higher at the top of this range than when it comes back down to the bottom. This would be distribution then, right? The daily also appears as though there was re-accumulation starting, but then more supply coming back in as it moved up.
How should I be viewing this, and how are my assumptions?