Have you ever used large timeframes such as weekly charts, weekly candles to analyze market trends; Or simply use a large time frame chart as a support for other timeframes. This article will share a little guide on how to use the weekly candle as a very good indicator to support the trend.

The weekly chart on AUDUSD below is an example:

For example, you are trading at position 1 on the chart, if so you must be in a huge downtrend before. Suppose you want to enter a sell order, but in the following week, a bullish candle appears, breaking the highest price of last week for the first time, do you still have the confidence to enter a sell order in the following week?

When there are signals from the weekly candlestick, you must immediately think about the upside when the price has broken through the highs of the old week. So your job now is to find a lower time frame to trade on the upside of the weekly candle. The author of this article (not the translator) used the H1 timeframe and entered the buy order using the supply-demand method. You can use a different method if you want, the important idea you need to understand is to trade with the bullish and bearish candles of the week. The weekly candle will show you the direction.

Assuming you missed this opportunity, it's okay, you can wait for the next chance at position numbered 2 in the picture below.

Using the same technique as the first example, you notice that the current weekly candle closed above the previous week's candle (price 0.7874). At this point, you should only think of the scenario that the price will increase during the current trading week and find opportunities to enter buy orders using the trading system you are using.

By using the movement of the weekly candlestick, you will be more confident knowing that you are following the main trend in the long term, you can confidently hold orders for longer, even hold orders throughout the news. The school will respect the direction of the old week and continue to increase prices.

This technique can also be used for short positions. Take for example the EURGBP pair in the chart below:

After the weekly candlestick breaks the lowest price of the previous week, in the following week you still maintain the way to trade in the down direction of the weekly candle.

In short, this trading technique is generally quite simple, you only need to use weekly candles as a support means for trend trading on lower time frames like H4 and H1. However, there is a major technical disadvantage that you also need to pay attention to the long-term trend on the weekly chart because the weekly candles cannot go up or down forever. Resistance and support levels on the weekly chart also play a similar role. You should avoid trading if the weekly candlestick has hit important support levels.

▶️Telegram : https://t.me/cryptostationchannel
📚Edu Station : https://t.me/educryptostation
⛑Support Form : https://forms.gle/q6J62HiZmoW8pKwK8