How to trade the weekly time frame in Forex market
Trading is an art and only a handful number of traders can master this skill. Everyone can join this online trading market but there is no assurance that they money. Without having strong knowledge of this industry it’s nearly impossible for any new traders will make to make a consistent profit. Those who are trading the live assets in Australia has spent many years in mastering the trading technique. Once you can truly understand this market you can execute highly profitable trades to earn your living. But to do so, you must have a valid trading system. Majority of the Forex traders uses the lower time frame in their technical analysis. But in this article, we will give you precise information to trade the weekly time frame. It’s true that when you trade the weekly time frame you have to wait for a long period of time for quality trading signals but the potential reward is worth of this waiting period.
Find the market trend
The first thing that you need to learn is to identify the trend. Majority of the novice traders finds it really very difficult to find the existing trend of the market. But today we will give a simple technique which will help to identify the weekly trend within a fraction of a second. All you need is the moving average indicators with 100 periods. If the price of certain assets trades below the 100 moving average in the weekly and daily time frame then consider it as a downtrend. Similarly, when it stays below the 100 periods moving average, the existing trend of the market is down trend. However if the see price trading above the 100 day period in the daily chart but in the weekly chart it’s below the 100 periods moving average then the trend of the market is not defined and you should never trade such market.
Find the key swings
In weekly time frame trading, you need to learn about the key swings of the market. In order to consider a point as a swing high, it must have two lows both in the right and left a side. Similarly, in order to consider it as the key swing low, it must have tow highs both on the left and right. Once you find the key swings of the market you need to draw the major support and resistance level on the weekly chart. Most of the time the price respects the key levels but it’s really hard to enter into the existing trend. But don’t worry. We will give you a precise information to ride the existing trend of the market.
Let’s say that you’re trading CFD and looking for a bullish trade setup. So the first things come first. Find a bullish trend in the currency pair. Once you find it draws the key support and resistance level to find the potential trading point. But all support and resistance level can’t be traded. You need to use the Fibonacci retracement tools to find the best possible entry points for weekly time frame trading. Though we have many retracement levels we will only use the 32.8%, 50% and 61.8% retracement level. Once the retracement level is drawn you need to switch back to the daily time frame for price action confirmation signal. Wait patiently and execute your orders with the price action confirmation signal.
Weekly time frame trading is extremely profitable but it needs extreme level of patience of the traders. But in order to trade weekly time frame, you need to learn about the different price action confirmation signal. It might be a little bit hard you but there is nothing to worry since you have demo trading account to master this technique. Use this strategy to demo trade the market as long as you need. Once you gain enough confidence switch back to your real trading account to make a consistent profit.