On Weekly Price Action Trading

Funny that most of us get into trading with the goal of doing less not more.

And yet no sooner we fund our account and we’re treating it like a slot machine.

By trading more not less.

This blog would get tonnes more traffic if I simply catered to the masses wishing to day trade.

Hell, I could even make money from affiliate brokers and online courses!

I could wax lyrical about 5-minute charting, and the ten different ways to scalp for daily profits.

But that wouldn’t serve this site’s goal – helping you become profitable.

The majority of beginners want to make money every day as if they’re working 9-5.

But day trading is tough, certainly too tough for me.

When I figured this out, I went the other way.

I took a longer-term approach.

Part of that approach involved weekly chart trading.

 

Price action trading on weekly charts

Your goal of doing less not more is a lot closer when you start trading weekly charts.

If there ever was a holy grail for making oodles of noodle from sitting on your butt, this would likely be it.

As a weekly price action trader, all you have to do is stare at a chart, you guessed it, once a week.

I mean how hard is that already?

You make one trading decision each week, for each market you follow.

You either do nothing – because there’s no signal.

Or you place an order, cancel one, or move a trailing stop – depending on what the charts are saying.

All this can be done in a minuscule one hour a week. Monday morning is best, as soon as the markets open.

That leaves you to carry on the rest of the week working doing whatever the hell you like.

Such as watching Netflix (my favourite), running a home, studying for exams, or hitting the pub (my second favourite).

Even working a full-time job.

There’s no in the moment panic as positions move against you on an intra-day chart.

You don’t need to worry about the non-farm payrolls.

Or that your broker is hunting your stops.

In fact, all you have to worry about is filling your time enough not to think about your trades.

Maintaining discipline is much easier the longer the timeframe traded.

With a daily chart, you get a whole night to sleep on it.

On a weekly, you get a whole seven.

When you day trade it’s easy to go tilt.

For those with busy lifestyles, or those who just don’t care about the markets a whole lot, then weekly charts offer the best way to grow your capital.

It’s the ultimate sideline or passive income.

Not to mention weekly setups are arguably the most accurate setups there are.

So, what’s not to like?

Here are some of the weekly trades I’ve made over the years. All with pathetically simple trading techniques.

Gold

My all-time favourite market. Always good for a couple of decent runs a year.

Weekly XAUUSD

German bund

A market that keeps growing on me. CFD margin requirements are steep these days, but paydays are sweet.

Weekly German Bund

US oil

I don’t like shorting.¬† But sometimes it’s necessary.

This one was inspired by a particularly favourable COT report. When the smart money’s short, it’s best to follow suit.

On this decline were two HIB trades the second netting a sizeable %R.

Note, with some CFD providers, contracts are monthly with expiry. Therefore when you re-establish a position there can be gaps in price.

Weekly US Oil

AUD/USD

To be honest, forex is my least favourite market.

But if I were to trade one pair regularly it would be the Aussie – the clear correlation with commodities being the main reason.

These were a couple of decent trades on the Aussie I had a few years back.

Weekly AUDUSD

Nasdaq 100

Note on the chart below, the first arrow. It’s pointing to a Harami Pin Bar.

You can hit pay dirt with these on a weekly.

Why?

Less noise on weekly charts means tight stops can be used. In this case, that tight stop loss was placed at the open of the blue harami pin.

On weeklies, I also don’t use a filter, unlike when I trade 8-hour chart or daily charts.

The first trade here was a nice r-multiple.

Weekly NDX

 

The danger with weekly charts 

Okay, so I’ve told you everything good about weekly charts.

But what about the bad?

Well, if you’re an impatient soul they might not be right for you.

If you like fast shoot-em-ups, then stick to the day trading.

Watching weeklies can feel like slow water torture to the ADHD addled.

I should know, I have those tendencies myself- and have to fight against them with all my weekly trades.

You can’t move stops intra-week if things aren’t going your way.

If you’re in a trade and let’s say Tuesday and Wednesday price is gunning for your stop-loss, don’t panic.

Prices often turn Thursday and Friday.

Give the trades time to work. Trust in the process.

When I first started trading weeklies, I too was scared on any reaction.

Be patient, be bold.

Get a few weekly trades under your belt and your whole outlook towards them will change.

What if your account size means you need tight stops?

Simple – open a micro account.

 

Your broker won’t be happy with you

The retail forex industry wants you to trade incessantly.

That’s why they invented scalping – in previous eras scalping was only ever done on the commodity trading floor.

And now there is even something called nano scalping I believe.

Don’t fall for all the hype of the brokers, Instagram introducing brokers, and Facebook gurus.

Each of them gets paid the more you trade!

Take your time.

Choose daily charts or weekly charts.

If you don’t think you have the patience for them, then maybe you shouldn’t be trading at all?

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John Scott
John Scott has been trading CFDs and FX since 2003. His favourite markets are the Dow 30, Gold and the GBP/USD. John believes short-term price action trading is the best approach for beginners to trade. Tradeneophytes is his humble attempt at helping new traders reduce the learning curve to trading success.
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john
john
5 months ago

I only trade weekly and daily candles yes on the weekly you have to wait but you get a better insight to what the trend is and also the support and resistance areas are