Try Trading the Weekly Charts
The market has never been easy to trade, and high-frequency algorithms, ETFs and counterintuitive fundamental correlations have made it more difficult. I have been relying on weekly charts to smooth out the volatility. Trading them requires deeper stop-loss levels and, consequently, smaller position size to stay within the risk parameters of my trading plan. Smaller profits over the longer term, however, are better than more frequent losses.
Over the last month, I've noticed a familiar pattern on many of the weekly charts. The moves off the May lows have been solid, but many have been capped by the resistance of previous highs or moving averages. There are encouraging exceptions, but few of those that have stronger charts have made actual swing highs....196 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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