From (a very busy) Craig Cobb at Trade with Precision:
“I just don’t have the time” is the most common reason I hear for people not trading or having poor results from their trading. Over the many years I have been trading and educating people across the world this is the number 1 excuse I hear.
This just in, it’s not true! Yes that’s right, I am saying right now that many people who claim not to have time to trade often do, they may just not be looking in the right place. An obvious solution to this issue is to trade a higher timeframe.
The weekly chart opens up such a world of possibilities. For one, there is an open and a close once a week which opens up the possibility of doing scans on the weekend. With the CMC bracket order system it’s possible to even safely raise orders on the weekend in the knowledge that even with an opening gap on Monday the parameters for the trade have been set to minimise risk this risk of gapping.
I know many traders that have pretty extreme careers and for 5 days a week managing to keep company and family both running takes up all their time. These people trade the weekly charts and do so very well. Sure they take less trades but I often say that less is often more when it comes to trading.
OK, so now I have belted everyone around the head with the “trade the weekly” mullet; it’s time to throw a couple of fish to start off. Right now I am looking at two charts that look great on the weekly chart. Keep in mind there is still about 20 hours of trade left until the end of the week so I will need to check these over the weekend.
Chart one is sugar (below). Check out each time there has been a red candle in the MA zone over the past year. History has the tendency to repeat itself and if I get a small red candle closed in this sell zone then over the weekend I will be raising a trend flow short order.
Chart two is Oats (below). Once again a great trend with a history of moving lower from the MA zone in the direction of the overall trend when a bearish candle presents itself. This week’s little indecisive candlestick is situated just beneath the resistance line at 241.26 as well as in the sell zone which, as history has shown, has presented good shorting opportunities .
Hopefully this sheds some light on a whole new style of trading. Trading the weekly timeframe keeps many trading when they think they might not have time, it keeps them from over trading (most of the time) and it’s a darn good way to capture some big moves.
I hope it helps.