Forex weekly strategy
Forex weekly strategy is a strategy based on position trading, where the trader keeps trading position several days and weeks.
If you have a misconception that traders need to be glued to the trading screen all the time, then you are wrong. It would help if you did not start with the giant trading pattern. You need to set your focus on weekly patterns, and it can offer you reliable highs. Forex market traders prefer to intraday trading formula just because of steadily growing market volatility. So, they can achieve greater yields within a limited and small timeframe. A weekly forex trading system can offer you better results. A weekly chart can help you to decrease the loss rate and find a long term position.
Best momentum trading strategy:
You will have to implement the best momentum trading strategy to manage your trading account. The momentum trading indicator can reduce the chance of risk. It can also enhance the chance of returns. The effects of the momentum strategy are prevalent.
What is momentum trading? This term momentum is taken from Newton’s first motion law. The law clearly states that an object in motion tends to stay in motion until an external force is applied to it. In the same way, the market in motion tends to stay in motion rather than the reverse. This is the main reason for which momentum strategy is very much powerful.
A currency that has rising value will actually have so many ups and downs. But it all happens in the larger and consistent rising trend.
Weekly charts can add an advantage to your overall market trend. It is less time consuming and labor-oriented than daily or intraday charts. Traders who follow the weekly trading system can easily spend more time without sitting in front of monitors. It is actually a time-saving and easy method to look upon the overall market and get a solid understanding of the trading market.
Indicators in weekly strategy:
There are three different kinds of indicators. If you want to follow the weekly timeframe forex strategy, then you should use these three indicators are as follows:
SMA or EMA – moving average indicators
Oscillators such as Stochastic, RSI, MACD
Trading patterns based on candle formations and shapes
Various trading conditions in strategy:
Long trade entry and exit on a weekly chart:
It would help if you waited for a 50 week MA to cross above 200 weeks MA OR Bullish pattern (bearish engulfing pattern or any other).
On the Daily RSI Indicator, you need to draw the trend line from the last bottom price (last oversold price) to today’s price.
Stop-loss will be reached when the price close is below the RSI trend line.
Short trade entry and exit on the weekly chart:
It would help if you waited for a 50 week MA to cross above 200 weeks MA OR Bearish pattern (bearish engulfing pattern or any other)
On the Daily RSI Indicator, you need to draw the trend line from the last upper price (last overbought price) to today’s price.
Stop-loss will be reached when the price close is above the RSI trend line.
The weekly trading strategy is totally based on the analysis of the exponential moving average. If you want to use this moving trading system effectively, then last week’s candlestick must be closed at the level above the EMA value.
While you are in the direction of a larger market, you need to take only stochastic signals. You will have to ignore the bearish signals at this point. The reverse signals from stochastic or RSI are generally used for taking profits. It is needed when the moving average surpasses the price. The candlestick pattern or some other methods can confirm the stochastic signals or RSI signals.
The weekly forex trading system is very much appropriate for those traders who do not have much time monitoring the whole trading scenario, and they find the time to check the market scenario once a day. It will also give benefits to the traders from the long-term trading. This also allows for monitoring the market trends. The traders can still work in the volatile market situation. Candlestick analysis is the best tool for using any strategy in any typical condition. The forex weekly charts can assume the availability of sufficient funds deposited. This weekly chart can provide traders with a profitable way to achieve and gain profit. It provides traders with significant yields as well.
This weekly momentum strategy is excellent for trading stocks and long term rising equities.