Forex Weekly Trading Strategy

Forex Weekly Trading Strategy

One of the most productive, profitable, and powerful tools for traders to use in Forex trading is to give importance to the time of currency pairings or crosses, particularly the major pairs, as they have a long-term trend or range.

Also, for the direction in which the movements are moving. Most of the time, traders make decisions using a higher time frame on price charts like the Forex weekly trading strategies.

AssetsFX

Compared with the daily time frame, the weekly time frame is much easier to make decisions just by glancing at the long-term price auctions.

There is a concept of drilling down and applying the least short time frame chart.

Key Ideas

  • Weekly time frames are a more simple weekly trading strategy in the forex market.

  • Weekly charts and systems always help to locate the direction of forex securities, and traders do not need to react to sudden changes.

  • Weekly trading strategies help manage time by saving as traders don't have to guard the chart all day long.

  • In weekly forex trading, small and slow trades achieve more success.

Numbers and Figures

The global forex trading market is estimated to be worth $2.4 quadrillion. The Foreign exchange market even bypasses Nasdaq's largest stock exchange, which has a market volume of almost $200 billion.

Individual trade, or retail Forex trading, makes up only 5.5 percent of the global Forex market. Large institutions continue to capture the lion's share of the pie, but it's a tremendous investment market.

The majority of Forex traders are younger than you might think.

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

The most used trading platform among the traders is MT4, around 85% trade on this platform. 6% of traders use MT5, 5% choose cTrader, and the other 23% use different media.

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

Top Forex Market Books for Strategies

Forex Weekly Trading Strategy

Trading can be learned from mistakes and good luck, but there are so many books in the market to sharpen knowledge.

This knowledge can assist in trading 300+ forex pairs and maintaining Forex weekly trading strategies from prime currencies.

Here listed some trading books with different aspects and techniques for new and professional traders to earn more profit in forex.

Here are the top 6 Books for Beginning Traders:
 

How to Make a Living Trading Foreign Exchange

Writer: Courtney Smith
 

How to Make a Living Trading Foreign Exchange- MetaFinancies

Courtney Smith starts the book with an introduction to fundamental forex, demonstrating how the market functions.

But all these functions are described in 2010 works devoted to earning money by offering six strategies for a steady income.

This book also described risk management techniques with the psychology of trading materials.

He also interpreted a method to multiply the profit lead by a basic channel system called the "rejection rule."

 

Forex Trading: The Basics Explained in Simple Terms

Writer: Jim Brown
 

Forex Trading: The Basic Explained- MetaFinancies

Jim Brown introduces the trading market to the traders and illustrates the working process.

He also provides practical tips for selecting forex brokers, placing trade orders, and forex elementary strategies.

He designed this book for beginners to understand the entry point and plan to build or add progress in trading.

Jim Brown also published two more books for his admirers and learners, encouraging him to write more on trading. 

 

Millionaire Traders

Writer: Kathy Lien & Boris Schlossberg
 

Kathy Lien & Boris Schlossberg provide a group of successful traders below the radar, not famous figures.

These interviews reveal their journey to success from small to exponential growth. This book can be an inspiration for beginners by showing a realistic path.

 

The Man Who Solved the Market

Writer: Gregory Zuckerman

 

Gregory Zuckerman wrote this book for interested traders who want or like to have an weekly charts strategy.

He elaborates the story of Jim Simons's experience with Renaissance Technologies. He has a quantitative fund with a long track record of 50% of yearly returns.

Gregory Zuckerman also describes a quantitative fund or 'quant,' examines pricing data and, when a trader finds out a profit opportunity, an automated program will look after to utilize it.

 

Naked Forex

Writer: Alex Nekritin & Walter Peters

 

Alex Nekritin & Walter Peters pointed out that "price is king." Though the price is just a base for profit and loss, traders only bother with this price.

They also include the trading strategies in this book, which are founded on price auctions; for that purpose, no specialised indicators are needed.

This book also discusses finding out a trader's type and psychology.

 

The New Market Wizards

Writer: Jack Schwager
 

Jack Schwager interviews multiple successful traders like Kathy Lien & Boris Schlossbergfor their Millionaire Traders book.

Jack asked the traders about their trading system and the secrets of making them profitable.

This book can help understand different trading styles and the strategy's effectiveness.


They found that every trader has their trading style, and there is no particular style.

Jack Schwager also published Unknown Market Wizards for a more clear view.

 

Trade using the Forex Weekly Trading Strategies

Most traders start their journey with intraday charts that determine changes in currency price in 5 to 15 minutes increments.

Some beginners also prefer daily or weekly charts to measure price changes.

Traders who start with these kinds of strategies often stay with momentum trading. And Weekly charts reveal such patterns.

Forex Trading is exchanging by following the trends. And the weekly trading system generates better results.

Weekly chart trading strategies help hold the position on top of the momentum. Traders follow some techniques to use the weekly forex trading system in their trading, which are:

  • Momentum Trading

Currency pairs generally fluctuate in the forex weekly charts. There is always a trend of more considerable rise and fall.

Which is the forex version of Newton's Law of Motion. Every object stands to keep in motion until they face outside action.

  • Less Time Commitment

The trading strategy offers weekly charts with more minor labour-intensive edges than intraday or daily charts.

Traders can spend time on other work rather than sitting in front of the computer.

  • Trend Indicators

In forex weekly trading, traders follow four technical indicators to help pin down trends and day trading options for the online currency trading market.

  • Moving Averages (MA)

Moving averages (MA) is one of the easy trend indicators.  It helps to plot a currency pair's selected time frame average price. Moving averages are calculated by adding the costs and dividing by the number of prices.

Weighted moving averages deliver more importance in recent prices than the previous ones. Generally, traders choose short-time moving average movement over the larger one and sell the trades below MA than the shorter time frames.

  • Stochastics

Stochastics is different from the MA indicator. It prospects the pace and momentum of the currency pairs' price changes. When the speed is doing up, currency enters in underlying strength.

This strength will continue to rise until something forces it to stop rate. In the meantime, it could be an excellent time to make a sell order when the momentum is decreasing.

The same method follows when the price of a currency pair is falling, which makes it a candidate for the best weekly trading strategy.

  • Relative Strength Index

The relative strength index points out the overbought currency pair. It organizes the strength on a 0 to 100 scale. The point between 0 to 30 represents the oversold, and from 70 to 100, it is overbought.

When a trade crosses the centerline of 50 from above, it signals to sell. On the contrary, it shows buy signals when it travels from below.

  • Bollinger Bands

One of the renowned Forex weekly trading strategies, Bollinger bands are named after the creator John Bollinger.

It is the same as Moving Averages, but the process is more complex than MA. support and resistance levels

The moving average prices are above and below standard deviation to calculate its needs. It shows the result in three different lines.

The price movement above the upper band represents a sell signal and below the lower bar shows a buy signal.

  • Trading With Multiple-Indicator Charts

Usually, momentum indicators cannot show the same directed trends on the weekly chart. Traders have to hold back until they become better in aggregate.

Trading in a mini lot (10,000 units) can provide more significant changes in price on a weekly chart than a micro lot (1,000 units) over a short period.

Traders use a stop-loss order to limit the risk of investing money in trades. Also, put profit targets for economic transactions to fix exit points.

Best Weekly Trading Strategies

When people hear about the best weekly forex strategy, they might think it is a highly complex computer program where they have to collect an enormous amount of data to find out the entry and exit point in the market.

But practically, forex trading strategies are not that hard; usually, the best accomplishment comes simply. Most of the Forex weekly trading strategies follow the weekly chart to get profit.

For the weekly strategy, traders buy when the trade price touches the highest value in four weeks and sell in the opposite situation.


Most traders always follow this system while day trading in the market. This is known as the four-week rule (4WR).

The four-week rule system was designed and first utilized by Donchian. In this effective trading strategy, swing traders have a low percentage of winning for the third of the time market trends. 

4WR may produce 40% less of the market for some markets, whereas others have small losses for choppy price action in market consolidation. So, try to balance the support and resistance levels always!

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. 

The 4WR also works uniformly for the short sides, as shown in the Goldman Sachs trade's second chart.

This trade also generates wins of around 18%  but the same as Google at one point; Goldman reaches 25% above but closes at a significant amount of profits.  


Refining The Strategy

A refining strategy can minimize the problem of staying in a trade for a long time. Traders can also utilize moving average broken points to exit the market instead of using the original 4WR rule, as google used a 10-day moving middle broken point to go to the trade.

The reason behind choosing the moving average broken topic is it shows one-half of the entry signal at any period.

Trend Filtering

4WR is also used on the market as a trend filter to define the trend. Traders try to determine the bullish or bearish market and find the buy signal before entering the new long position.

When the recent calls go under the system, traders buy and get confident in the market's uptrend. Downtrends define a sign for sale. By 4WR, traders can only enter the short positions on a sell signal.

Finding Longer-Term Trends

The four-week rules are also applied to find out a long-term trend. Most traders use Dow's theory to find the movement, a comprehensive barometer of market health.

When traders found new highs in both averages, they confirmed the bull market.

In contrast, both trends confirm the bear market with a low average signal.


And the withdrawal between the average leads to caution about the direction of the analysts.

They are adopting 4WR confined greater possibilities in the forex trading strategies.

Instead of subjectively selecting a new high or low, 4WR predicts when a signal will be created in advance, ensuring that all analysts utilizing the rule reach the same point.

Picking The Best Forex Strategy For You

There's not one solution for determining which forex strategy is most profitable. The Forex trading strategy should be appropriate for each person's situation.

It is important for you to consider each person's personality and find the correct trading strategy for them. What works well for other people might not work for you.

Conversely, strategies that are deemed too expensive and criticized may prove useful.


It can therefore take experiments to find out which Forex trading strategy works. It may be possible to delete the ones you are unable to use.

Several essential aspects of trading styles should be considered.

The Role Of Price Action Trading In Forex Strategies

The extent of fundamental analysis depends on trading. Nonetheless, a good forex strategy always uses price movements. These are also called technical assessments.

Technical currency trade strategies have two major styles: trend follow and counter-trend trading. These two strategies use the ability to identify and exploit price patterns.

Typically, in terms of prices, the simplest concept includes support and resistance. In simple terms, these terms represent reversible market movements from lows and highs.

Guidelines to follow

Guidelines to Follow- Forex Weekly Trading Strategy- Metafinancies

Weekly Trading Strategies are based on the interpretative moving average. To effectively use the moving trading strategy, closing week's candlestick must be confined at a level above the EMA value.

To enter the larger market, traders should only consider stochastic signals and have to overlook bearish signals. The stochastic reverse signals (REI) are generally utilized for receiving profit by exceeding the price.

Weekly trading systems of forex trading markets are generally profitable for part-time traders who cannot focus the whole time on monitoring the market's ups and downs. Though long-term traders can also profit from this system, it allows them to monitor the trend.

Traders also can perform in volatile situations. Weekly charts are best for traders for providing different beneficial ways of achieving large profits.

Pros and Cons

The advantages of employing Forex weekly chart strategy and diverse trading strategies.

  • The win rate can gradually increase by achieving momentum on the weekly chart. On average, the expected win rate can go 70% or more.
  • Get daily interest to hold a position in the market, increasing the realized gains and helping to redeem any losing trades experience.
  • It is hard to learn, but after starting the trade, it becomes very effective and doesn't have to spend much time placing and updating works while opening a short trade entry and a long trade entry.
  • Have greater chances to win in small proportion with bigger wins. However, the percentages of small wins depend on the balance. Traders can manipulate the return percentage by changing the risk amount.
  • The opportunity to trade in different strategies doesn't require more significant capital or time; traders can proceed in swing trading with regular activity.
  • possible to maintain both short and larger retail investor accounts, which is very rare. As for day trading strategies traders, it's harder to have a high return percentage with a $5,000,000 trading account than with a $5,000 momentum trading account.
     

Honestly speaking, forex weekly charts and trading strategies have NO DISADVANTAGES nor are chances of losing money rapidly. Instead, they develop clear movement trends to achieve higher winning rates.

Still, there are some drawbacks some traders found, which are:

  • In the weekly charts trading strategy, traders have to take fewer trades and less leverage than in day trading. However, it allows doing other forms of swing trades.
  • Have fixed starting capital which is a minimum of $2000 but can get more preference with $4000 or more money. 

Frequently Asked Questions

FAQ- Forex Weekly Trading Strategy- Metafinancies

Q.1 How Do I Trade Forex Weekly?

You'll need to identify whether the market is following a long trend or a short one. When you're done specifying the trade (every week timeframe), take position accordingly.

And... that's how you trade on the market weekly ( simply following forex strategies out there).

Q.2 What Is The Most Accurate Forex Trading Strategy?

Let's cut through the chase; trend trading is one of the most dependable and straightforward forex trading strategies. As the name implies, this strategy involves trading and forex strategies in the direction of the current price trend.

To do so successfully, traders must identify the overall trend direction, duration, and strength.

Q.3 Which Timeframe Is Best For Weekly Trading?

The best time frame for intraday exchanging is within one to two hours of the stock market opening. However, most stock market channels and time frame in India open at 9:15 a.m. So, why not begin at 9:15 a.m.?

Exchanging within the first 15 minutes ( time frame) may not be as risky if you are a seasoned trader.

Q.4 Is Forex Trading 7 Days A Week?

The Foreign exchange markets are theoretically open five days a week, eight hours a day. You can trade Forex 24 hours a day, seven days a week.

The major markets are spread across four geographical areas, each with its time zone.

Q.5 Who Is The Best Swing Trader?

Simply put, his name is Mark Minervini. Mark has been around for a long time. He has been a top swing trader for more than 30 years and has featured in a Market Wizards book.

Mark's audited returns are spectacular, demonstrating what is possible through hard work and discipline.

Q.6 Is scalping A Good Strategy?

Scalping can be a very profitable strategy for day traders who use it as their primary strategy or supplement other types of currency exchange.

Adhering to a strict exit strategy is essential for compounding small profits into significant gains.


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What indicators do professional traders use?

Conclusion

Forex traders get a more profitable exchanging experience using forex weekly forex trading strategies, time frame and other forex strategies.

They find ranging or trending conditions and follow the conditions through drilling short frames to conduct access and exit the trade. Most of the traders prepare using the ideal 4-hour time frame.

Traders are advised to trade without leverage and use a hard stop loss in the weekly time frame. I hope this blog can give a compelling idea and have a good experience after reading it.
 

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