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forex weekly trading strategy
weekly chart trading strategy
Today, the price changes in the financial markets take place over several days, while a few years ago it took several months. For this reason, analysis of closing quotes can be carried out in just a couple of days thanks to a weekly chart. This timeframe can display long-term trends that affect the exchange market. Choosing the timeframe correctly is not any less important than following any other rules of a trading strategy. This will determine the intensity of trading as well as the size of StopLoss and TakeProfit.

Today, increased intraday volatility rather forces many long-term traders to trade on smaller timeframes. Price movements, which used to make turns in the course of a month, now occur during the course of a week and the range of the week is compressed to an intraday swing. Now it is the weekly charts that are the basic timeframe for the real closing price; it clearly shows the long-term players inclined to opening large positions and their influence on the current trend. Therefore, one can argue that the key to effective and profitable trading on financial exchanges can be Forex or stock trading strategies for weekly charts.

The essence of a weekly chart trading strategy can be better expressed in comparison of two popular trading styles. The dispute about short-term (intraday trading) and position trading started back in 1530 with the first commodity market. Generally, beginners want to start with scalping because it is quick and fun and high expectations; as a result, they spend the whole day in front of a monitor. They treat every moment that they do not trade as wasted time. This can cause rushed decisions and deposit sinks. However, weekly Forex strategies are offered as a result of finding the proper balance between scalping and long-term trading.


High volatility within one trading session is the main characteristic of financial markets. Because of this, many speculators who previously profited on long-term lots choose short- to medium-term timeframes. Since such traders are not accustomed or do not know this uncharted territory, they ignore the minute intervals. Therefore, for better benefit you will need weekly charts with 10 or 15-minute bars in order to analyze the situation in the market and track the necessary price levels that will be the entry points to the market in еру future. A week has an opening price (the first trade on Monday morning) and a closing price (the last trade on Friday afternoon) with a high and a low somewhere in between. The weekly close is a summary of the sentiment of the most of еру market players for the week, just as the daily closing price outlines sentiment for the day. Your review should take place at the end of the week, namely on Friday, when trading sessions close. All a trader needs to do is determine which days were reversals.

A trader, having chosen a weekly strategy, is supposed to use a certain tactic:
If there is an increasing trend during the week, it is very likely that there will be a bearish trend on Monday, in other words, a full price turn. In this situation, a trader must place an order in the opposite direction to the price movement in time. You will be better off making transactions in small amounts; otherwise you can suffer large losses. The trend developing according to the standard scenario calls for closing orders for sale on Tuesday and opening purchase orders on the same day. Trend reversals usually occur on Wednesdays. Accordingly, a trader should close the buy orders on this day. If the direction of the price movement remains unchanged, you can open several additional purchase transactions. The market behavior can change dramatically on Thursday if there are no noticeable changes on Wednesday. It is best not to open new trades before the end of the week. If after four days of trading a weekly candle has formed a top tail, then you are advised to close all orders at the time of their rollback on the last day of the week.

The weekly chart trading strategy is fairly easy to apply and based on volume data and some aspects of technical analysis. This is done to ensure that new traders who enter the market could adapt quickly and start trading with this strategy, although weekly strategies are often used by both beginner and experienced traders as an alternative to aggressive strategies such as scalping. Despite the fact that weekly Forex strategies seem to be quite simple in execution, they can bring a lot of profit to the trader. When working with them, it is best to choose those currency pairs that have the necessary level of stability. If you are familiar with such terms as timeframe, maximum volume for selected timeframe, local extremes, then you will not find it difficult use this strategy in your trading.

However, such strategies have their drawbacks - they require a larger deposit to ensure efficient and profitable trading. And admittedly, these trade setups call for patience and self-discipline as it can take several months for weekly price bars to reach the trigger points.


Next, you should determine those price levels that you need to enter the market. You will only need three and four out of these five levels since they are located on the local high and low of the week – this step is crucial. The remaining thing is to define two price ranges in these areas with a cluster graph showing the volume. Further on, when these levels are defined, you will have to wait until the next trading session opens. And you will be able to use these levels for the next trading week.


Trading rules are simple: you open the trade once a week at a predetermined price. The position is opened with a small stop-order and a multi-profit system, i.e. with several profit-taking goals as well as transferring the position to the break-even point, which is very important. The determination of these levels of interest because this is the only human factor of this strategy, the rest is done automatically.

Forex weekly strategies help to combine an investor's trading approach with a trader's tactics effectively since a trader is less nervous and, as a result, works profitably and an investor endures losses more adequately. A weekly candle contains a huge amount of trade information. The classic analysis of the weekly candle requires the weekly candle to be broken down into five parts regardless of its final form - this helps to assess market trends correctly. Most often, the real final candle is similar to the classical one but the pattern of price behavior within a week can be different.



Trading tools are yen crosses GBP/JPY, AUD/JPY, EUR/JPY, CHF/JPY and CAD/JPY as they hold a weekly trend well. Timeframe to search for the entry point is H4, for trades - W1. At the beginning of the week we put BuyStop/SellStop 20 points higher than max and 20 points lower than min on the first H4 candle. StopLoss is at the level of the opposite order, TakeProfit is a triple stop. We move into the break-even point after reaching the profit equal to the stop. It is important not to delete the second order after the first one. We close both orders regardless of the outcome at the end of the week.


There is one transaction per week with the expectation that the current trend will carry on its movement. Since there is only one filter, practically no signals are generated in the flat trend. Trading instruments are EUR/USD, GBP/USD and AUD/USD. Timeframes are D1/H4. The indicator is exponential moving average EMA (12) on D1.

To buy: such weekly Forex strategies require you to close the last week's last daily candlestick above the EMA (12). You are waiting for the breakthrough of last week's max and place BuyStop order 3-7 points higher than the price of the broken level on the closed H4 candle. StopLoss follows the nearest min but not lower than 50-55 and not further than 100-105 points. If the nearest local minimum is closer than 50 points, then you should take the previous extremum into account. TakeProfit is the movement range over the past week. The transaction should be moved to a break-even level after a half the movement or you can use a trailing stop with a reasonable step. In order to enter a trade you apply the same argument but in the opposite direction.


Trading instruments are any currency, commodity futures and stocks. Timeframe is W1 (can be D1). Indicators are RSI ( 8 ), RSI (14), RSI (19), SMA (9). For buy entry: a week (a day) closes above SMA (9). The oscillator lines should be arranged in the following order: the red line RSI ( 8 ) is higher than the blue line RSI (14), which in turn is located above the green line RSI (19);
For sell entry, the week is closed lower than SMA (9). The indicator lines should point in the downward direction: RSI ( 8 ) is lower than RSI (14) and RSI (19) is the highest one. When working on W1, the trading signals should be taken at the closing price on Friday. You can apply any principles of risk management to close.


You take the chart of the selected currency pair's movement is taken in the weekly and the daily period. The indicator RSI is added with an interval of 2 periods on both charts; you should also add three simple moving averages of 20 periods (the first is set to 20, the second is calculated by the minimum and the third - by the closing price). First, take a look at the weekly chart to determine whether the price is approaching the trend line or the Fibonacci support or resistance line. As soon as there is an opportunity to open a profitable position, it is necessary to switch to the daily chart. It is also important to monitor whether the RSI indicator will be able to reach the level of 5%, which will indicate a strong oversold market and an approach to the extremum.

The tactic is better suited for those who have more patience. Let the market itself create the opportunity for a successful position rather than you spending time in pursuit of profit. However, even if the trade has not been executed, stay alert because another possibility will not take long.

To conclude, trading on a weekly trend allows you to take advantage of all the benefits of long-term and short-term trading. Weekly Forex strategies filter market noise and track the trend efficiently since the entry is made at some average price which is the closest to the main direction. Position trade is more logical from the point of view "price takes everything into account"; fundamental analysis of the current situation and a forecast for the week ahead is necessary, although all "extreme" factors quickly lose their importance in the medium-term trading compared to intraday trading. On weekly charts, candlestick analysis and channel indicators are more accurate but you should avoid the busy market and work only with volatile instruments that keep a stable trend under standard conditions.