Weekly Charts Reveal the Bigger Picture

Weekly charts have two distinct trading advantages over a daily time frame. The first is that the weekly horizon allows more time for the original trading strategy to play out, and the second is that position size has to be smaller to accommodate a deeper stop-loss level. Traders are often frustrated by whipsaws, only to see their original thesis confirmed over time. Weekly charts allow the trade to mature, and time also affords opportunities to increase position size by adding to winning trades.

I look for weekly trading candidates that have an overbought or oversold stochastic oscillator, then try to identify areas of support or resistance. The trade will ultimately be based on the weekly chart, but taking a look at the daily time frame helps to focus in an entry or exit level....216 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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