When and How to Use Weekly Time Frame Chart Analysis in Trading Forex

Ignoring weekly time frame chart analysis could cost you big losses in Forex trading!

Discover 3 specific cases when weekly time frame beats daily time frame analysis.

Learn the situations when weekly timeframe exposes what daily charts can’t, how to analyze it properly and when to check it.

1. Long-term historic levels

When the market trades in a strong bullish or bearish trend and goes beyond recent historic levels, quite often the daily time frame will not be sufficient for the identification of significant supports and resistances.

The proven way to identify the next meaningful levels will be to analyze a weekly time frame.

Examine a price action on EURAUD forex pair on a daily time frame chart. The market is trading in a strong bullish trend and just updated the high.

Checking the historic price action, we don't see any historic resistance on the left.

Switching to a weekly time frame chart, we can easily recognize a historic resistance that the price respected 5 years ago.

That's a perfect example when weekly t.f revealed a historic price action that a daily didn't.

2. Trend-lines

Weekly time frame analysis is important not only for a search of historic levels. It can help you find significant vertical structures - the trend lines.

We can easily find several meaningful historic resistances on EURUSD pair on a daily time frame.

Though, there are a lot of historic structures there, let's check if there are some hidden structures on a weekly.

Weekly time frame reveals 2 important trend lines, one being a vertical support and another being a vertical resistance.

With a daily time frame analysis, these trend lines would be missed.

3. More accurate breakout confirmations

Some false support and resistance breakouts that you see on a daily could be easily avoided with a weekly time frame analysis.

Quite regularly, a daily time frame support or resistance is in fact a weekly structure. And for its breakout, a weekly candle close will provide more accurate confirmation.

From a daily time frame perspective, we see a confirmed breakout - a daily candle close above a solid resistance zone.

It provides a strong bullish signal on AUDUSD forex pair.

However, the violation turned out to be false and dropped.

Such a false breakout, could be easily avoided, checking a weekly time frame chart.

The underlined resistance is in fact a weekly structure.

The price did not manage to close above, and perfectly respected that, starting to fall after its test.

Such a deeper analysis would completely change our bias from strong bullish (based solely on a daily) to strongly bearish (based on a daily AND weekly)

Remember This

Do not ignore and always check a weekly time frame.

It shows a unique perspective on the market and reveals a lot of hidden elements that you would not notice.

No matter whether you are a scalper, day trader or swing trader,

remember that weekly time frame structures are very impactful and accumulate large trading volumes.