One of the main reasons why most Forex traders lose money is a failure to trade based upon longer-term, higher time frames such as the weekly time frame. Weekly timeframe is very effective in Forex trading. It cuts out a lot of noises on lower timeframes and give a much better picture of the medium term or even long term trends.

Weekly time frame takes a lot of patience (couple of weeks to months) for trades to develop in weekly timeframe because of which people who are mostly impatient, cannot utilize or trade on this with discipline. In forex, the support and resistance levels on Weekly timeframes are much better respected than on hourly or daily timeframes.

This article explains why and how to use the weekly time frame in your Forex trading, and outlines both rules and actual historical performances of a few weekly time frame trading strategies which you might use or adapt.

What is Time Frame in Forex Trading?

Shorter time frames show much more detail of price movement over time, but longer time frames show wider, longer-term pictures of trends and ranges in the price.

Why You Should Use the Weekly Time Frame in Forex Trading 

Then, make sure that you trade in the same direction as that trend, or trade reversals from support and resistance when there is no trend and the price is ranging. Use a higher time frame price chart such as the weekly time frame to make these calls.

While you can use a daily time frame chart for the same purpose, you should use the weekly time frame in Forex trading for this because it is easier to judge the very long-term price action at a glance there. It is also a good idea to drill down and use at least one shorter time frame chart as well, such as the 4 hour or hourly time frames, to fine-tune your trade entries and exits to make them more precise, which also means more profitable.

Advantages of Weekly Time Frame

For novices, We would recommend 1 hour, 4 hour and daily time frames.. Weekly time frames may be too long for beginners. Since learning is very important, sticking to a time frame like 1 hr or 4 hr gives you more opportunity for some learning and experience.

Conclusion

By taking the time to analyze weekly time frames, traders can greatly increase their odds for a successful trade. Becoming a successful Forex trader is all about putting the clues together in a way that gives you the upper hand. If you aren’t currently paying attention to the weekly time frame you aren’t getting a complete picture of what the market is doing. This limited visibility will hinder your ability to properly analyze a trade setup which can put you at an immediate disadvantage.