Weekly, Daily and Monthly Open Trading Strategy An easy way to follow trends

April 29, 2024Forex TradingAdmin Manish

I hope this tutorial video about trading weekly charts taught you a weekly trading strategy that can help you eliminate bad trades. Remember, using this weekly chart trading strategy will help you to make better trading decisions because you’ll have an idea of the overall trend. For a swing trading strategy, you use the H4 chart to look for breakouts of the previous week’s high or low, as we showed above. A reversal candlestick around such levels can also present a good swing trade setup. Different exit strategies can be employed, including a channel boundary or the weekly close, as shown above.

And the withdrawal between the average leads to caution about the direction of the analysts. The point between 0 to 30 represents the oversold, and from 70 to 100, it is overbought. This book can help understand different trading styles and the strategy’s effectiveness.

Long-term trading can be profitable, as it allows traders to take advantage of long-term trends in the market and potentially compound returns over time. However, it’s important to note that long-term trading is not a get-rich-quick scheme and requires patience, discipline, and a well-defined trading plan. You can see by looking at the Weekly chart, that the EUR/USD is in a long-term forex trading strategy downtrend.

On this USDJPY example, you can notice how the price pivoted around weekly open line first. 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. Thousands of samples were taken, increasing the statistical validity of the back test. The monthly version has 166 trades, annual returns of 12.1%, and max drawdown of 21%. Understanding the fundamentals in the market can be of great value addition as it can help you to understand if you are correctly positioned in the market or not. FOREX.com is authorised and regulated by the Monetary Authority of Singapore (MAS), ensuring compliance with Singapore’s financial standards.

Best Weekly Forex Strategies

On the weekly or even daily and monthly charts, do not expect the price action to stay at the major levels for a more extended time period. This is something not possible; most of the time, prices spent one to two weeks at the major level, and then it starts moving again. This one is the simplest yet most important trading strategy investor’s use. The idea is just finding out the trending market and take buy entries when price action approached the support level.

The primary assumption is that fundamental analysis follows technical analysis before any trading rules.
Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst.
However, when performed effectively, they provide traders with significant yields, and may be very profitable.
Let’s cut through the chase; trend trading is one of the most dependable and straightforward forex trading strategies.
It is advisable not to use the technical indicators to trade the weekly chart because most of the indicators are the laggard indicators, so you will end up taking trades very late.
News related to elections, international conflicts, or major diplomatic developments can cause sharp movements in currency values.

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. On the hourly timeframe, you can see the weekly open line marked out with a purple horizontal line. Looking at this chart of Gold, you can see that on a big down week, forex weekly trading strategy the price traded higher after the open first.

One of them has sold 30,000 copies, a record for a financial book in Norway.

Millionaire Traders

Meanwhile, you can perform position trading or swing trading methods as a weekly trading strategy. While technical analysis focuses on price action and patterns, fundamental analysis examines the underlying economic factors that drive currency values. Weekly forex trading strategies benefit from a blend of both approaches. As you can see in the image below, the pair was in a strong uptrend, and during the pullback, it prints the bullish engulfing pattern, which was a sign for us to go long in this pair. As we took the buy entry, the price action goes up; it holds at the major resistance level and then blasts to the north. On the weekly chart, this trade ends up milking 200 pips within just four months.

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So, they can achieve greater yields within a limited and small timeframe. A weekly chart can help you decrease the loss rate and find a long-term position. This weekly forex strategy is based on the analysis of the exponential moving average (EMA).

Both declines violated support mid-week and bounced, closing Friday’s session above those contested levels.
Don’t try to manage the trade or get fancy, just trust the strategy and let the trade be a winner or a loser.
Though long-term traders can also profit from this system, it allows them to monitor the trend.
In this scenario, the trader can focus on buying opportunities on pullbacks, ensuring that trades are taken in the direction of the prevailing trend.
You can see by looking at the Weekly chart, that the EUR/USD is in a long-term forex trading strategy downtrend.

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Less Time Commitment

Under the lazy trader approach, the trader places a buy/sell stop order 20 pips above the maximum, and 20 pips below the minimum. Stop loss is on the level of the opposite order, while take profit actually amounts to triple stop. The break-even point is achieved when profits equal to stop are obtained. It is important within this forex trading weekly strategy not to remove the orders placed, and to close them only at week closure. By using a weekly timeframe, traders can focus on longer-term trends and reduce the impact of short-term market noise. This makes the strategy particularly appealing for traders who prefer a more laid-back approach, as they can hold positions for weeks or even months while riding the larger market movements.

Which chart is best for weekly trading?

In the fast-paced world of forex trading, traders face numerous challenges, including market volatility, rapid price fluctuations, and the constant pressure to make quick decisions. To navigate these obstacles successfully, adopting a well-thought-out trading strategy becomes essential. Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

It is often necessary to backtest your strategy on different timeframes to know which works best. We provide access to trading FX, Futures, Metals, CFD’s and Commodities on MT4 and word-class customer service. Using these confirmation tools can help reduce false signals and improve the overall effectiveness of the Weekly Supertrend Trading Strategy. Forex trading is made possible by a vast network of banks and brokerages that work together to create the largest and most liquid financial market in the world.

Weekly trend strategy

Experience a platform trusted by thousands of traders — fast execution, user-friendly tools, and full regulatory backing. It can therefore take experiments to find out which Forex trading strategy works. It is important for you to consider each person’s personality and find the correct trading strategy for them. When a trade crosses the centerline of 50 from above, it signals to sell. He also provides practical tips for selecting forex brokers, placing trade orders, and forex elementary strategies.

Weekly trading strategies, given their broader timeframe, may involve larger price swings, making risk management even more critical. Political stability, trade agreements, and geopolitical tensions also have a profound impact on forex markets. News related to elections, international conflicts, or major diplomatic developments can cause sharp movements in currency values. Weekly traders need to monitor global news and adjust their strategies to mitigate risk during periods of uncertainty. Understanding the broader geopolitical context helps traders to better manage the influence of sudden, unexpected events on their positions. The main disadvantage being that we need to know how to identify the trend and how to time the entry or exit.