🕒 What is a Weekly Chart?
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A Weekly chart means 1 candle = 1 week of price movement.
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It shows long-term trends (good for swing trading or investing).
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Each candle contains the Open, High, Low, and Close (OHLC) for one week.
✅ Why Use the Weekly Chart?
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Best for identifying major trend directions (bullish or bearish).
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Helps avoid market noise seen in daily/intraday charts.
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Useful for position trading (holding trades from a few weeks to months).
📊 How to Read the Weekly Chart for Profits
1. Identify the Trend
Use any of these methods:
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Moving Average (e.g., 50 or 200 EMA):
➤ If price is above, trend is bullish.
➤ If price is below, trend is bearish. -
Trendlines or Channels:
➤ Draw lines connecting highs and lows.
➤ Breakouts of these lines often give trade signals.
2. Use Confirmation Indicators
To confirm your trade, use:
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✅ RSI (Relative Strength Index)
➤ Above 50 = bullish strength
➤ Below 50 = bearish weakness -
✅ MACD (Moving Average Convergence Divergence)
➤ Line crossover above 0 = buy signal
➤ Crossover below 0 = sell signal -
✅ Supertrend
➤ Green = Buy
➤ Red = Sell -
✅ Volume
➤ High volume = strong move confirmation.
3. Entry Points on Weekly Chart
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Bullish entry:
➤ Price breaks above resistance with strong candle + confirmation (RSI, MACD, Supertrend). -
Bearish entry:
➤ Price breaks below support + confirmation.
4. Profit Booking (Exit Strategy)
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Set Target at:
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Next major resistance (for buy)
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Next major support (for sell)
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Use Trailing Stop Loss:
➤ Keep moving SL below each week's low (if buying) to lock in profits.
5. Stop Loss (Risk Management)
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Place SL:
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Below previous weekly candle low (if buying)
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Above previous weekly high (if short selling)
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📈 Example Strategy (Weekly Supertrend + RSI)
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Look for Supertrend Buy Signal on Weekly Chart.
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Check if RSI is above 50.
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Enter trade when weekly candle closes green.
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Place SL below last week’s low.
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Book profit at next resistance or trail SL.
📝 Summary
| Step | What to Check |
|---|---|
| 1 | Weekly Trend (MA, Price Action) |
| 2 | Confirmation (RSI, MACD, Volume) |
| 3 | Entry after breakout + confirmation |
| 4 | SL below last week’s low |
| 5 | Target = next resistance OR trail SL |
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