Many forex traders use daily charts showing price changes every five or 15 minutes. However, some traders, usually the novice traders, do not fare well with that short term system. That system requires traders to be experienced and skill full. Thus, we now have a weekly forex trading system that can help those traders.
With a weekly forex trading system, the trader will have a higher chance to produce better results. Forex trading is all about the trend or momentum.
The weekly system provides specific technical indicators to help traders stay in the top direction of momentum. Besides, it also helps them not to get caught in trading minor shifts in a bigger trend.
When you look at a forex chart, you will see a currency pair rarely move up and down statically. There will always some bigger rising and falling trends.
The rising currency will have bigger tendency to own many small ups and downs along the way in a larger and more consistent rising trend. That will keep happening until several market events or political and economic events weaken the trends.
A winning trade usually involves a momentum that suggests the next move will stay in the same direction.
Less Time Spend
Other than letting traders see larger trend pictures, weekly charts are also less labor-intensive than daily charts. Traders using weekly charts can spend more time away from the monitor than those using daily charts.
Using Multiple-Indicator Charts
Usually, traders use more than one indicator. But it is uncommon for momentum indicators to point in the same direction on your weekly chart. You need to wait before you do a trade until they are more favorable.
What you have to remember is to always trade small and be patient. For instance, when you usually trade a mini lot, now use a micro-lot instead. That is essential since the price differences on a weekly scale are greater than when you are trading in shorter time periods.