By Rob Colville on September 24, 2014 in
If you’ve ever shied away from trading the weekly chart for being “too slow” or “too boring,” then think again! As we will soon reveal in a before and after video of one of our “big mover” trade set-ups of the year (so far!), you can really bag yourself a fantastic return from trading the weekly chart…for doing very little!
Our How to Trade USDCAD …and Bank 800+ Pips is not just a testament to keeping profitable trading simple and boring, it is also a prime example of how easy it is to trade the weekly chart.
After all, the weekly chart is one of the efficient timeframes for you to set, forget and walk away rather than being constantly glued to the screen nursing the trade. Which scenario would you rather have? I know which one I would choose! The good news is that to trade the weekly in the way of The Lazy Trader, you do not have to do anything different than the timeframe you are already trading!
What many new recruits quickly discover is that they are able to trade all asset classes in the same manner, regardless of whether they are traded on the four-hourly, daily or weekly chart. This is thanks to the universal method of analysing the price action (ie: the story) that every chart is telling us.
Our USDCAD buy set-up was spotted on the weekly timeframe, on the 22nd June (2015) after a pullback in a strong uptrend. The close of a bullish pin bar on the weekly gave us a perfect opportunity to “buy the dip,” in advance of a potential trust to the upside and the continuation of the prevailing uptrend.
A variety of management techniques were suggested and were employed depending on the risk appetite of the client. Some clients were content with a higher probability outcome with lower profit potential, so took profit as and when price reached the previous swing high (“Take profit 1”). Others decided to use this point to ”scale out” by exiting half of their “long” position and banking half their profits, while leaving the remaining half of the position to run while trailing their protective stop-loss until they were stopped out.
For most, the trade lasted for 12 weeks and netted clients over 800 pips profit (risking approx 160 pips)…not bad considering the trade took 3 minutes to spot and trade!
That’s Lazy Trading!