How To Trade On Daily And Weekly Timeframe 50 Minute Interview

Swing trading is much better than day trading. You don’t have to worry much about the intraday timeframes like the H1, M30 and M15. These timeframes are driven by the news and the order flows and are too much volatile. As a swing trader, you should focus on the daily and the weekly timeframe.  Watch the video below in which a a pro trader who trades on the daily and the weekly timeframe answers the questions asked by new traders on how to trade on the daily and the weekly timeframe.

On Sunday you should look at the weekly charts of pairs like EURUSD, GBPUSD, NZDUSD, AUDUSD, USDJPY, GBPJPY, GBPNZD, Oil, Gold etc. After looking at the weekly chart, you should check the daily charts and see what has been happening on the daily chart during the past week. This will give you the idea where the market will be heading in the next week. Now you should use this knowledge to plan your trades during the next week during the next week starting from Monday.

Now there is a problem. If you trade on the daily and the weekly timeframe, you will have to accept a stop loss that is something like 100-200 pips. If you are comfortable with a big stop loss, you can just reduce the position size to make sure that the account risk does not exceed above 2%. We highly recommend that you use this 2% risk level at all times. This will make sure that your account never receives a big blow.

However, this is what we do. Once we have planned our trade on the weekly and the daily timeframe, we switch to the H4 timeframe for the entry and exit decision. You should learn how to use the fibonacci levels on H4 level. Fibonacci levels are very good when it comes to finding the turning points on H4. We are looking for entries with stop loss between 20-30 pips. On H4 timeframe sometimes you will get very nice entries with stop loss like 10-15 pips. These are the trades that we should be looking for. What we are doing is catching the big moves that make 150-300 pips with a small stop loss which should be preferably between 10-20 pips.

How do you achieve that? We achieve that by properly planning our trades. We use pending orders. So once we have placed the pending order, we don’t have to watch the charts. It is as simple as that. Place a buy limit order or a sell limit order with your entry price and the stop loss and the take profit level. Everything has been calculated and planned before. Once you have the pending order placed there are 4 outcomes. The first outcome is simple. The pending order does not get filled. Market never reaches the entry level that you have calculated. You lose nothing. Look for a new opportunity. The second outcome is the ideal outcome. The pending order gets filled and the take profit target also gets hit. You have made a great trade. The third outcome is horrible. Your pending order got filled. But the stop loss also get hit. But since you have made sure that the stop loss is something between 10-20 pips. Your loss is not great and a carefully planned next trade can recover easily recover the loss. The fourth outcome is the pending order gets filled and the take profit target is missed. You end up with a profit of 50-60 pips. This is also not a bad outcome. You have made a little profit.

How To Use A Neural Network To Predict Daily And Weekly Candle?

The idea is to reduce the probability of stop loss getting hitting to as small as possible. We are trading to make money. Our aim is to make money with as little time spend in front of the charts. As said above, you are going to look at the charts on Saturday and Sunday and plan the trades. With practice you can achieve a winrate of 80%. You can also read this post in which we have explained how you can use a neural network to predict the daily candle. Elman Neural Network is a recurrent neural network. R takes around 30 minutes to make the calculations. So you can only use this neural network on daily and weekly timeframes. Saturday and Saturday are good times for the making these calculations as the markets are closed. Once you have made the calculations you can then plan the trade. Just keep in mind, the price levels generated by the neural network may be 50-100 pips way from the actual levels. What it means is that you should use these levels as not being very accurate. The calculations on weekly timeframe are better as the news and order flows have little impact on this timeframe. Whatever you do, just make sure you test it thoroughly and always make sure you never exceed the 2% account risk level when it comes to live trading. Neural Networks are being used quite a lot by the big banks, hedge funds and other big institutions in making the predicitons. You should also start using them in your swing trading. Good Luck!

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