While many Forex traders prefer intraday trading due to market volatility providing more opportunities in narrower time-frames, Forex weekly trading strategies can provide more flexibility and stability. A weekly candlestick provides extensive market information. Weekly Forex trading strategies are based on lower position sizes and avoiding excessive risks.
For this strategy, traders can use the most commonly used price action trading patterns such as engulfing candles, haramis and hammers.
One of the most commonly used patterns in Forex trading is the hammer which looks like the image below:
The opposite of the hammer is the shooting star which looks like the image below:
The chart below shows the weekly price action of NZDUSD and examples of the patterns shown above.
Source: Admiral Markets MetaTrader 4, NZDUSD, Weekly chart (between 19 August 2018 to 31 May 2020). Accessed: 31 May 2020 at 12:45 pm BST – Please note: Past performance is not a reliable indicator of future results or future performance.