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Weekly Chart Analysis

This is about a quick way to improve weekly chart analysis.
Many have been using the weekly chart unsuccessfully, and
it is about time that one begins to improve the weekly
chart analysis.  

In my opinion, weekly chart swing traders are losing more often than both daily and monthly charts traders.  Something must be done to remedy that. Let's get started.

Why Weekly Chart Swing Traders Do lose More Often?

The main reason is because they are standing on the path
of the monthly and daily charts swing traders.  

So, a weekly chart trading setup that appears to be a high probability
trade setup does not always appear so on the monthly chart.
The only time a weekly chart trading setup is a high probability
trade setup is when that setup is equal to the quarterly chart 
trading signal.  

If not, one is in it for a nasty surprise.  In those instances, one is effectively trading a useless weekly chart trading setup. 

Most professional markets players use the yearly chart as a
long term chart because there is no other higher time frame 
than the yearly chart if one is using any trading software or
platform today.  

Those professional traders use the monthly chart 
as their trade signals time frame, but enter their trades on the daily chart.

One that is relying on the weekly chart is really fighting against the
professional traders and long term investors.  They will surely lose
more often that they win.  What a miserable state! I do not know about
you; but I would rather trade with the professional traders than to stand
on their way.

The monthly chart is the real medium term time frame generally speaking.

So, one that is using the monthly chart is more likely to survive
in the financial markets than a weekly chart swing trader unless
one is using it to find quarterly chart's trading signal that one
will use as a trading setup before applying the top-down trading

Obviously, I am not saying that one can not use the weekly chart 
profitably.  One ought to know what are the best weekly chart
trading setups.  That is why I do not use or recommend the weekly
chart trading setup.  

A monthly and daily charts swing trader can more often get away with all kinds of problems than a weekly chart technical trader.

How To Quickly Improve Weekly Chart Analysis?

Please go first to the quarterly chart and draw all channels,
trend lines, key suppport and resistance levels before switching
to the weekly chart to select only trading setups that are
on or near one of those drawings.  

Can you promise me that and do it all the times?  If yes then you are on your way to start improving your weekly chart analysis.  

The problem is that even in 2020, twenty first century, there are still brokers or trading platforms that do not offer the quarterly chart.  I would say to technical traders not to use those platforms.  Please feel 
free to quote me anywhere.  If one does not have the quarterly chart,
one should stay away from the weekly chart.  I say that and I stand
by it.  

I will not even use the weekly chart technical indicators 
signals or setups alone without checking the quarterly chart.
Same thing, I would say about the weekly chart candlestick and chart 
patterns.

Do I hate the weekly chart?  No, but I rather use things that work 
more often than continue to gamble and waste large sum of money.
All in all, the weekly chart is really useless without the 
quarterly chart.

Who Uses The Weekly Chart Successfully?

I am glad that you ask that essential question.  Position traders 
that use the quarterly chart high probability trade setups do; and they 
enter their trades on either 2H or 4H chart.  Their trading signals 
is on the weekly chart, but they do not rely on the weekly chart trading setups.

Those are the only market players who successfully use the weekly chart.  If one is obsessed with the weekly chart then it is better that one uses the 3-day chart instead of the weekly chart.  That is my opinion.

How About Weekly Chart Elliott Wave Analysis?

The Elliott wave principle is a powerful guide that sheds the light
on the inner structures of the price-action.  Nevertheless, once again,
I will never recommend that the Elliott wave traders use only the weekly 
chart.  I count my waves mainly on the monthly chart and validate them my wave count on the yearly chart.  

Those who do not have the yearly chart are better off counting the Elliott waves on the daily chart; and validate them on the monthly chart.  One can also count waves on the hourly chart and validate them on the daily chart.  

I love the monthly chart and I recommend it.  One more time, please note that the weekly chart is useless without the quarterly chart.  Please do not forget that unless you love wasting money.

When Does Weekly Chart Is Little Bit More Reliable?

The weekly chart is less risky when it aligns with the monthly chart.
When does that happen?  

Well, it happens only once a month and twelve times in a financial year.  That is at the end of each month.   It is also the case when both the monthly and quarterly candlestick bars are closed at the same time.  I mean at the end of March, June, September and December.  

It is OK to use the weekly chart at the close of those candlestick bars.  

How Do You Know About All This George?

Like many technical traders that are lazy, and who do not want to check all higher time frames, I finally start using the daily chart then I ask myself; why not the weekly chart.  

I love moving averages, so I began to use the weekly chart moving averages crossovers.  To keep a long story short, it was lost after loss.

The weekly chart was not helpful to me until I discover that those attractive weekly chart trading setups only work when they align with the quarterly chart.  I then abandon the weekly chart for good, and headed to the monthly chart.  I am glad I did that.

I also found out that one must use a top-down trading method like a professional position trader who combines quarterly (setup), weekly (trading signal and 2H or 
4H chart (entry).

Is There Another Way To Use Weekly Chart?

Oh yes there is.  Do you day trade?  

If yes, then go to the weekly chart and draw all the horizontal key support and resistance levels.  Right?
Then switch to either 2H or 4h chart to identify high probability trade setups on the edge of one of those weekly horizontal weekly key support and resistance levels.

I am not talking about Fibonacci or any other weekly horizontal key level.  Just the normal horizontal weekly support and resistance levels. 

To improve that strategy, one can also focus only on the weekly horizontal key support and resistance levels that coincide with a
quarterly chart's horizontal key support and resistance level.  

Please use a demo account to test and retest what I am sharing here before going live.  That will help one to spot what works and what does not.  One will also gain more experience and familiarise oneself with
that strategy.  Alright?  Good. 

What can I add more?  Nothing.  I think I have said enough about this topic.  I will not say more.  I leave it to technical traders to found out for themselves what works and not on the weekly chart. So, that is it really.

Conclusion

One that finds a weekly chart swing trading setup that coincides with a quarterly chart trading signal especially at the end of the monthly or quarterly candlestick bar must use a different times frame trading method to trade it.  


Whatever swing trading setup one is trading, a swing trader must always pay attention to the market SP 500 and market leaders.  A weekly swing trader who takes heed of everything that I have shared in this article must also remember that it is always wise to combine the technical analysis and fundamentals without ignoring the economic news.


Finally, please use an investment account instead of a normal swing trading account.  That would surely help to avoid losing unnecessarily because of the short term price fluctuations that often take even the best swing traders out of their trades.


I hope this helps.  If yes then please share and bookmark this article.  I will really appreciate that.  Please do not hesitate to post relevant questions and comments at 24Stocktrader YouTube channel and in due course I will get back to you.


I wish you the very best.

Happy Trading


This article is written by 

George Beaulieu

founder of https:www.stochastic-macd.com