When I started looking at a few longer term charts I figured I would pull something out of the past. I came across RAINBOW charts years ago and still like the concept for longer term looks. Thank you Mel Widner, Ph.D. for the original article. I find the visual appeal very strong. Google "rainbow charts" and surf around for discussions and examples. There is also this link.
http://trader.online.pl/ELZ/t-i-Rainbow_Charts.html
I do not use the exact code from the examples but have placed this task on my to-do list. What I ended up doing was simply using multiple time frame moving averages. Call it the lazy mans way. Not nearly as pretty but relatively informative. Two charts of PAAS follow. The moving average periods on the first chart are 3-9-(18)-36-(54)-81-144-225. The 18 and 54 periods are what I focus on and are the thinner lines. The second chart is a series from 9-162 using 9 period increments. There is no magic in these particular numbers. Charts courtesy of Wealth-Lab.
This is not a recommendation to buy or sell this stock. Due diligence is your responsibility. Find a professional if you need professional investment advice.
Chart source: http://wl4.wealth-lab.com/
Thank you for your time.
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