The advantages of using the Weekly charts
In this video:
00:42 – Helping you gain an overall longer term perspective
01:43 – Overall strength in the JPY and NZD, with weakness in the USD, EUR, GBP and CHF
02:08 – Adding probability by having the W1 and D1 charts showing the same direction
03:05 – Interest rates dropped to 0.25% in the UK
03:42 – Took trades live on my webinar for a +2.15% net gain
04:45 – The Weekly charts take just a few minutes to place
05:28 – #1 Engulfing candle strategy available for free
I would like to share with the advantages of using the weekly charts. How you can use them, how you can profit from them. Let's talk about that and more right now.
Hi Forex trader, Andrew Michem. The Forex Trading Coach to day is Friday the 5th of August. I want to talk about using a longer term perspective and what I do for long term perspective is, I use the weekly charts. They are a fantastic time frame to look at, to give you an overall longer term gauge at what's happening, what's likely to be coming into the next week.
Helping you gain an overall longer term perspective
What I do is at the beginning of each week I look at all my different character pairs, look at the weekly charts and then I post them on my membership site for clients. Trades that I'm looking at, specific trades bases on the weekly charts. Buy and sell trades and having the entry and exist levels there for people to use. Also trades that I can't see, or currency pairs that I can't see a trade on, but where I see a likely movement up or down for that week.
What I mean by that is that some currency pairs are showing really good technical setups, some are showing strength or weakness, but maybe they're not perfect trades in themselves based off the weekly chart. Longer term for that week, I‘m seeing strength or weakness in a currency pair.
I post all that for clients to use. Now how can we use that, well this week as an example. I have been looking at strength in the Japanese Yen, strength in the New Zealand Dollar.
Overall strength in the JPY and NZD, with weakness in the USD, EUR, GBP and CHF
Little bit of strength in the Aussie Dollar also. I've also been looking for weakness this week in the US Dollar, the Euro, the British Pound and the Swiss Franc. When you get that longer term perspective, it really helps you when you trade down onto the shorter time frame charts.
As an example, if I see the weekly chart and a daily chart all setting up in the same direction, in the same week, then fantastic, that really adds to my probability.
Adding probability by having the W1 and D1 charts showing the same direction
Likewise, when I go down to anything shorter, say like twelve hour charts, four hour charts, one hour charts. If I can have the weekly direction and even maybe the daily direction and a shorter term direction, all showing at the same time. Then fantastic, it adds again to probability, because the longer term, medium term and right now on the shorter term. They're all showing same currency pair, same direction. Fantastic when that happens.
What I've done this week, I've mentioned twice this week on the daily charts. I've been looking for sell trades, Euro, Yen and Franc Yen. I've also got weekly charts showing with the same thing and so again it just adds to probability. Those trades have been fantastic. Go and look at your charts, you'll see the Euro Yen, the Franc Yen, has just falling fantastically well.
Interest rates dropped to 0.25% in the UK
Likewise, I have been looking for sell trades on most of the British Pound pairs. You note that yesterday, Thursday the interest rate out of Britain dropped. They half their interest rates down to 0.2/5 percent from 0.5 percent, so from half a percent to a quarter of one percent, so actually halved the rate.
It's historical lows and that's great, but how can you profit from that. Well at the beginning of the week, I was looking for sell trades on most of the British Pound pairs longer term on the weekly charts. Just as an example yesterday I held a live webinar for clients. This was before that interest rate announcement, several hours before.
Took trades live on my webinar for a +2.15% net gain
I took four charts live in front of clients on a live account on what our charts, all four of them hit their proper targets. I also took one twelve hour chart trade that got stopped that, but overall from those four trades that I took live with my clients. In European session just yesterday, if you'd taking half of one percent risk on each of those five trades, we made 2.15 percent net gain.
One losing trade, four profitable trades, 2.15 percent. If you're over in the UK now and I'm guessing your interest rates have dropped even lower as the main cash rates dropped. Well how many weeks, months and years is it going to take you to make 2.15 percent on your bank savings rate. Yet we made that in just a two hour session, just yesterday.
Again it's using the longer term perspective, medium term and then scaling that down onto one hour charts and seeing what's showing setting up right now and taking those positions. That's really what this lesson is about. You see the longer term charts are fantastic, because you can put the trade on and then you can basically put them on and leave them.
The Weekly charts take just a few minutes to place
You can get through news announcements and spikes and widening spreads and end of day widening spreads and all those types of things, by having that longer term perspective. It also means that you're trading far easier, yeah because you're not stressed and worried about what's in the charts all the time. Especially if you're trading those weekly chart trades as an example.
Lots of information here to get through. Use it to your advantage, go and look at the weekly charts in the beginning of each week and look at where you see likely new setups and where you see likely strengths or weakness or movements for that upcoming week. It really helps give you that overall perspective and gauge.
#1 Engulfing candle strategy available for free
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