I’ve mentioned many times before how weekly charts are my default view when looking through charts. I use daily charts for entries and exits but the weekly charts are what I primarily generate my ideas from. Why? A couple reasons. One is it’s easier to determine the longer term trend by looking at a weekly chart going back a couple years. The other is if the stock is not at all time highs you can more easily see if there is any potential overhead you need to be aware of.
I like to see prices breaking through key price areas on the weekly charts. Sometimes, this may be a classical chart pattern like an inverse head & shoulders or a cup-and-handle. Or it may simply be a break of a potential resistance zone after some consolidation. Something all chart patterns have in common is that there is an area that has acted as resistance in the past, price breaks though and this area “should” then act as support (or vice versa). These are the areas I look for.
Notice I always say these area “should” act one way. This is never a guarantee. There are no certainties in trading and you should always go into a trade with the mentality there is a good chance you will be wrong. This helps in risk management and protecting your capital with stop placement. Even more importantly, it helps in accepting these losses. Acceptance is key. A losing trade shouldn’t bother you as long as you stuck to your plan. Take the loss, learn any lessons possible, and enter the next trade without hesitation.
Enough talk. Here’s a bunch of weekly charts looking pretty good right now. Not surprisingly, there’s a couple gold miners in here. I’ve been watching these closely for a few weeks and like the potential. See my prior post on gold here – Golden Opportunities in 2018.
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Have a great night!