Things have changed a lot in the past a few years. Shorter time frames like 4hrs, 1hr, etc., are too hard to be traded anymore on the currency market. Also, big gaps, especially recently, prevent stock traders to do day trading using the shorter time frames.
It is possible to do day trading in a very special and unique way: I Trade the Daily Chart, but I Am a Day Trader
However, this special and unique way is not anybody’s bread and butter. It needs lots of knowledge, experience and discipline.
But those who aren’t in that level yet can still trade if they learn how to analyze the weekly and monthly charts properly.
What Do You Need to Look on the Weekly and Monthly Charts?
You only need three things:
We are not saying this is easy to do. But if you learn how to do it properly, you can pick the strongest setups and avoid the bad, risky and weak ones that cause you to lose money.
That was the tip of the day. Now, let’s take a look at some weekly and monthly charts that are forming trade setups.
Before you see the below market analysis report, please note that this is NOT a trading or investment advice and we are not trading and investment advisers. We are sharing this just to answer the questions of those who are interested in these market. You understand that you buy/sell/hold at your own risk.
There is a relatively strong resistance level at 1.4689 that has formed on 2016.01.20. You can see it on the monthly, weekly and daily charts.
Now it is a while that this market has reached this resistance level. The level is still working as a strong resistance, and it seems USD/CAD is not able to break above it, at least for now.
So, now it is possible that USD/CAD forms strong sell signals below the 1.4689 level. Even if it doesn’t do this, you should avoid taking any long positions for now.
The 2020.03.22 weekly candlestick has formed an upper shadow and bearish body. This candlestick and also the previous one have formed a too strong Bollinger Upper Band breakout as well. Some traders may consider this as a strong sell signal, but it is not correct.
- First, the 2020.03.22 weekly candlestick hasn’t completely engulfed the previous candlestick.
- Additionally, the previous candlestick is too big and strong.
- The sell signal has formed right after a too strong up movement, which means bulls can still be strong, and may want to test the 1.4689 resistance level again.
Therefore, testing the 1.4689 resistance level is still the most probable movement. In spite of this, it is not the time to take any positions for now, based on what the charts say:
Now, let’s take a look at the monthly chart that looks so interesting.
We leave the monthly chart analysis to you. Please submit a comment and let everyone know what you see on the below chart and what it means to you 😀