• Welcome to your Forex Forum - share your currency trading strategies, news & tips!
    Sign up Log in

As a forex trader, does the forex weekly trading strategy effective?

skrimon

Well-known member
ObFnLqusxhPlEOMpIBviSXxFMtcCU7TPNB_DPwqr7I6CLOPw0g.png
When trading foreign exchange, one of the most effective strategies is to place weight on the time of currency pairings or crosses, especially the big pairs, which tend to move in a tight range over longer periods of time.

In addition, for the thrust of the motions. In most cases, traders use a longer time period on price charts, such as Forex weekly trading techniques, to make their selections.

The weekly time frame makes it more simpler to make decisions with a quick glance at the long-term price auctions, as compared to the daily time frame.

There is an idea of using the shortest time frame chart possible to gain insight.

Numbers and Figures

It is thought that the global forex market is worth $2.4 quadrillion. Even Nasdaq's largest stock exchange, which has a market volume of almost $200 billion, is passed by the foreign exchange market.

Only 5.5% of the global Forex market is made up of individual trade, which is also called retail Forex trading. Large institutions continue to get most of the money, but it's a great market for investing.

gN4hg-A8c46y52scy-a7npsh3ARuWrI6odVIT6j-OMNEowQu3Q.png
Contrary to popular belief, the majority of Forex traders are younger than you might imagine.

According to a poll, around 27% of traders are between the ages of 18 and 34; 39% have only been trading for 1-3 years, while 7% have been trading for ten years or more.

MT4 is the most popular trading platform among traders, accounting for around 85% of all trades. MT5 is used by 6% of traders, cTrader by 5%, and other media by 23%.

With a daily trading volume of $18.9 billion, IC Markets is the world's largest forex broker in Australia.

Making use of Forex Weekly Trading Strategies

Most traders begin their adventure using intraday charts, which determine currency price fluctuations in 5 to 15 minute increments.

Some newcomers prefer daily or weekly charts to track price fluctuations.

Traders who begin with these tactics are more likely to stick with them. Such patterns can be seen in weekly charts.

Forex trading is the process of exchanging currencies by following market trends. Furthermore, the weekly trading technique produces superior outcomes.

Weekly chart trading tactics aid in staying ahead of the momentum. Traders utilize the following ways to employ the weekly forex trading strategy in their trade:

Momentum Investing

On general, currency pairs fluctuate in the forex weekly charts. There is usually a pattern of greater increase and collapse.

What is the FX equivalent of Newton's Law of Motion? Every object will continue to move until they are stopped by external forces.

Reduced Time Commitment

Weekly charts with more minor labor-intensive edges than intraday or daily charts are provided by the trading technique.

Rather than sitting in front of a computer, traders might use their time doing other things.

Indicators of Trend

Forex weekly traders use four technical indicators to help them identify trends and day trading opportunities in the online currency trading market.

Averages of Movement (MA)

Moving averages (MA) are a simple trend indicator. It is useful to plot the average price of a currency pair over the given time frame. Moving averages are determined by multiplying the costs by the number of prices.

Weighted moving averages give more weight to recent prices than previous ones. Generally, traders prefer short-term moving average movement over longer-term moving average movement and sell contracts below the shorter time frames.

Stochastics

Stochastics is not the same as the MA indicator. It forecasts the rate and momentum of price changes in currency pairs. Currency enters underlying strength when the speed increases.

This strength will continue to rise until it is forced to slow down. Meanwhile, when momentum is weakening, it may be a good time to place a sell order.

When the price of a currency pair falls, the same procedure is used, making it a candidate for the best weekly trading strategy.

Index of Relative Strength

The relative strength indicator identifies the currency pair that is overbought. It organizes the strength on a scale of 0 to 100. The point between 0 and 30 denotes oversold, whereas the point between 70 and 100 represents overbought.

When a transaction crosses the 50-day moving average from above, it is a sell signal. When it moves from below, on the other hand, it shows buy signs.

Bands of Bollinger

Bollinger bands, one of the most well-known Forex weekly trading methods, are named after their founder, John Bollinger.

It is similar to Moving Averages, but the method is more sophisticated. levels of support and opposition

To calculate its needs, the moving average prices are above and below the standard deviation. It displays the outcome in three different lines.

Price movement over the top band indicates a sell signal, while price movement below the lower bar indicates a buy signal.

Using Multiple-Indicator Charts to Trade


On the weekly chart, momentum indicators typically do not exhibit the same directional trends. Traders must stay back till they improve in aggregate.

Over a short period, trading in a mini lot (10,000 units) can result in more substantial price movements than trading in a micro lot (1,000 units).

A stop-loss order is used by traders to restrict the risk of investing money in deals. Set profit targets for economic transactions to determine departure points.


Using the Four-Week Rule

Google uses 4WR in their trades as the chart shows the businesses are sold around ten weeks after the new week's low spread. The company secured an 18% profit.

But this trade increased approximately 30% more at one point; however, it drew back the gain of nearly half of its point just before the sell signal.
xn7VuLtrcOiiZcor0dYWwyuYXZFL5jMR7H4fAk9eHb43tgCQIQ.jpg
The 4WR also works consistently on the short sides, as illustrated in the second chart of the Goldman Sachs trade.

This trade also delivers winnings of roughly 18%, which is comparable to Google at one point; Goldman hits 25% higher but closes with significant profits.

7L2TZ2H-DlhS2os0yJuGlfGXKVp91HDEeYxA04xZj3wCa0XiGw.jpg

Pros and Cons
The benefits of using the Forex weekly chart technique and other trading systems.

  • By gaining momentum on the weekly chart, the win rate might steadily increase. On average, the projected win rate is 70% or higher.

  • Receive daily interest for holding a stake in the market, boosting realized gains and assisting in the redemption of any losing trades.

  • It is difficult to understand, but once you get started, it becomes incredibly effective and you don't have to waste time setting and updating tasks when opening a short trade entry and a lengthy trade entry.

  • Have a higher likelihood of winning in a smaller proportion with larger victories. The percentages of modest wins, on the other hand, are determined by the balance. Traders can change the risk amount to change the return %.

  • The ability to trade in diverse methods does not necessitate more significant funds or time; traders can continue swing trading alongside normal activity.

  • It is feasible to keep both short-term and long-term retail investor accounts, which is extremely uncommon. For day trading methods traders, having a good return percentage with a $5,000,000 trading account is more difficult than having a $5,000 momentum trading account.

To be honest, there are no advantages to using forex weekly charts and trading tactics, nor are there any risks of losing money quickly. Instead, they create distinct movement patterns in order to obtain higher winning rates.


However, several traders discovered the following drawbacks:

  • Weekly charts trading strategies need traders to take fewer trades and use less leverage than day trading. It does, however, permit other types of swing trades.
  • Have a fixed beginning capital of at least $2000, but you can obtain more preferential treatment if you have $4000 or more.

Forex traders who use forex weekly trading strategies, time frames, and other forex tactics have a more profitable trading experience.

They look for range or trending conditions and follow them through very short frames to enter and exit trades. The majority of traders prepare for the optimal 4-hour time frame.

Traders should avoid using leverage and set a hard stop loss in the weekly time frame. I hope that after reading this blog, you will have a fascinating idea and a positive experience.
 
Top Bottom