Perspective And The Weekly Chart
Weekly charts are often overlooked, yet they can provide a ton of useful information. This is especially the case when incorporating context when it comes to evaluating smaller time frames.
During the evaluation process, there are a series of steps that we follow. Step 1 is called “Perspective” and this is the step where we gather information that will shape the trade idea or decision that we are about to make.
Perspective addresses things like:
- Time Horizon: Is it a position trade, swing trade, or day trade?
- Stops And Targets: Is this an aggressive trade, expecting a new high or low? Is this more of a conservative trade looking to exit at the next closest predetermined level? How far do you place the stop?
- Should you let part of the position run? Or is this trade all in/all out?
- How much size should be taken? And should you add or not?
Observing signals on a weekly helps to shape your thought process and expectations as you gather market information and construct the premise behind your trade. Bigger picture perspective is important in position trades like the one Andrew wrote about here.
This video serves as an introduction to these concepts. It was part of a weekly training series that I used to conduct online and is still relevant today.
The Trader Journey Goes Far Beyond Charts
When it comes to investing and trading education, many do not realize that it is more a function of emotional intelligence than technical skill. People always assume in order to trade well, you have to be good at math which is completely inaccurate.
When it comes to timing markets consistently, it is more about being a detective. You gather bits and pieces of information that help you get a better idea of how the crowd feels now, and where these feelings should lead their decision making (order flow) in the near future. Charts, such as the weekly, are one resource to gather and interpret this information.
I hope you enjoy the video, and please share your feedback.