Master Weekly Swing Trading: Key Tips for Consistent Wins!
Building a routine that includes both technical analysis and psychological preparation can lead to more consistent trading results. A lot of traders spend their weekends doing market analysis, and they often come up with different ideas and price predictions for an upcoming trading week. If you are bullish or bearish on any given instrument, price rarely goes up or down in a straight line. In trading, it is usually a good idea to wait for a candlestick to close before entering a trade on any time frame.
So, if you pull up a weekly chart, one easy trick you can do to create the best trend indicator, is count back 13 and 26 weeks from the current weekly candlestick. Forget all the fancy Forex indicators – this is a method which is both very simple and effective. You can trade the weekly highs and lows on the H4 timeframe, as we have shown above. The weekly highs and lows can be good resistance and support levels on the H4 timeframe, so you can look forex weekly trading strategy for trade setups there. A breakout of the weekly high or low can present a good swing trade setup.
Whilst we try to keep information accurate and up to date, things can change without notice and therefore you should do your own research. But before we moved higher, the market traded below the previous month low to shake-out longs that were too early for the move and placed their stop below previous month low. I am a professional Price Action retail trader and Speculator with expertise in Risk Management, Trade Management, and Hedging. One of them has sold 30,000 copies, a record for a financial book in Norway. FXCC brand is an international brand that is registered and regulated in various jurisdictions and is committed to offering you the best possible trading experience.
- This advanced strategy capitalizes on failed breakouts and breakdowns, often leading to powerful moves in the opposite direction.
- After the first trade price action printed the brand new lower low, then it pulled back again to the most recent resistance area.
- One common mistake is basing trade decisions solely on the weekly candle without considering other relevant factors, such as trendlines, support and resistance levels, or fundamental analysis.
- However, potential steady profits within weekly strategies are the main aim of such trade.
- The strategy is popular among floor traders and is used to forecast market direction.
These points help in managing trades with higher precision, reducing risk and maximizing potential returns. Traders must cultivate patience, ensuring that they wait for high-probability setups rather than forcing trades. Regularly reviewing and reflecting on past trades can help identify emotional biases and improve future decision-making.
- Trades were hypothetically entered at the end of a qualifying week and held until the next week’s close.
- The results detailed below are from back tests conducted on sixteen major and minor Forex currency pairs over a very long period of almost 20 years, from 2001 to 2020.
- In fact, it contains five daily candlesticks whereas the dynamic patterns of their change reflect the actual forex market trends.
- The weekly timeframe of Japanese candlestick represents the one week, and the 5-minute chart of the Japanese candlestick represents the 5 minute time.
Trading with the Weekly Time Frame Only
This information is not intended to be used as the sole basis of any investment decision, should it be construed as advice designed to meet the investment needs of any particular investor. There are a ton of ways to build day trading careers… But all of them start with the basics. In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. While you can use it for free, remember that republishing the code is subject to our House Rules. EURJPY – Price based under resistance which is bullish and then price broke upside.
Forex Weekly Strategy Based on 200 Moving Average
This big picture approach lowers noise levels considerably, allowing the weekly trader to see opportunities that are missed by short-term players flipping through their daily charts at night. Admittedly, these trade setups require patience and self discipline because it can take several months for weekly price bars to reach actionable trigger points. You can see in the USD/JPY weekly chart below that the 50 moving average was above the 200 moving average, showing a golden crossover. Price was also above both moving averages and breached a recent support level that had been holding up quite well. The ADX was showing strong upward momentum and we had bullish candlestick patterns including hammers and engulfing bars. Stop loss could have been just below the 50 SMA which is around 200 pips which sounds high but isn’t bad when you consider price moved almost 4,000 pips in an uptrend.
Because of their simplicity and the fact they can be marked in a matter of a few seconds, they can be a useful tool for every technical trader. As we already mentioned, Monthly, Weekly and Daily open levels are not a stand-alone strategy, but they can be used as great confluence levels for your ideas. All you have to do is simply to mark out daily open with the horizontal line and watch market acting around the level. The MACD divergence at the highs was signalling a potential selloff the whole time.
Take profit is the level of monthly reversal, or it is closed as soon as reverse signals emerge. At the end of the article we show you a weekly backtested trading strategy. For example, you won’t want to implement day trading or scalping on the weekly chart. On the flip side, you won’t want to implement position trading on the 15-minute chart. Different timeframes are more suitable for different trading styles and strategies.