5 Ways Weekly Charts can help your Trading & Investing
Weekly charts are a powerful timeframe, and regardless of your style, they can help you gain perspective on a particular setup and identify its potential

Using higher timeframes slows the action down and allows you to calmly analyze price and volume.

This will lead to better decision making.

For investors learning to analyze weekly charts and their trends can only complement your fundamental analysis.

For traders they are the "prevailing wind" and trading with this weekly trend will increase probabilities and help you remember to focus on larger patterns

  1. Weekly Charts show the True Trend of a Stock

Weekly charts eliminate a lot of the back and forth that occurs intraday and on daily charts. What is left is often a clear picture of the trend of a stock.

⬆️ Trending Up
↔️ Basing
⬇️ Trending Down

To identify this trend you are going to want to plot a 10 week SMA and a 30 week SMA on your charts

During a strong uptrend you will be amazed at how well the 10 week line acts as a guardrail for a stock's move

$ZM increased 450% in 10 months, undercutting the 10 week only once

This is not simply a 2020 occurrence. Most stocks which make significant moves > 100% show respect for the 10 week line.

This is because it is often a spot where institutions build/add to positions on pullbacks.

$DOCN advanced 150% in 6 months holding the 10 week sma

The same is true if you look back at the best performing stocks in history. The 10 week sma is consistently an area of support.

Here's is $HD's powerful move in 1981

The red line is the 10 week SMA.

The 30 week moving average is just as useful for investors and traders for identifying the stage of the stock

Stage 1 - Basing
Stage 2 - Advance
Stage 3 - Consolidation
Stage 4 - Distribution

The big money in made during S2 Uptrends and the big money is lost in S4 Declines

  • S1 - Price chops back & forth around a declining to flat 30 week MA
  • S2 - Starts with a big volume breakout from a base, Price starts trending above a rising 30 week MA
  • S3 - Price chops around a flattening 30 week ma
  • S4 - Price starts trending below a declining 30 week MA

Stage Analysis, developed by Stan Weinstein, shows the long term trend of any stock.

Both investors and traders should focus on stocks beginning or in Stage 2 Uptrends.

My Interview with Stan Weinstein: https://youtu.be/FtAshnE3MwM

  1. Weekly Charts reveal the footprints of Institutions.

Institutions can't hide when they begin and continue accumulating positions.

Look for.

✅ Huge Volume Spikes
✅ Tight Weekly Closes
✅ Increasing average weekly volume

Look at the chart of $TSLA since 2019. Notice how breakouts from bases are accompanied by volume well above the 10 week average, & within bases volume dries up.

Look at significant volume weeks and determine based on context and CR if a stock is being accumulated or distributed

$SNAP is a great example of tight closes within a base suggesting institutions drew a line in the sand and were accumulating shares.

Also look for this after a breakout to see if institutions are still building positions

$FUTU is an example of weekly volume increasing during a move. As it does this the stock becomes more liquid and larger institutions can get involved.

  1. Focusing on Weekly charts reminds us that the biggest moves come from larger patterns.

100% + moves begin with a long basing period and a strong breakout.

Focus on 👇

✅ Recent IPOs after their first big base
✅ Mature names after they have consolidated

$NVDA has had multiple moves out of long basing patterns. This allows shares to fully transfer from short term players to longer term institutions

Recent IPOs often start long term moves out of their first primary base.

Read "The Lifecycle Trade" for more info 📘amzn.to/3n5epJR

  1. Weekly Charts Remove the Noise. Limit Decisions

As mentioned previously, weekly charts remove intraday and daily chop. The stock can move a lot throughout the week but it is the institutions who control where it closes.

The weekly action and trend supersedes the intraday and daily movements of a stock.

Always make sure you are stacking probabilities and trading with the weekly trend.
For investors, Weekly Charts are a great way to use technical analysis and time trades since there are a lot less signals to work with.

Position and even swing traders should also consider buying on a daily chart but then switching over to a weekly once the trend is established

This is especially helpful after a significant correction when trends can last a lot longer than we think and daily noise can scare us out.

Here's an example with $PTON buying on the daily and then managing the position on a weekly.

When the weekly trend changes PAY ATTENTION.

  1. Identify Key Levels and Pivots

Weekly chart highs and closes are excellent pivots to use on a daily chart for shorter term traders.

Inside weeks especially provide clear pivots for swing traders. These are volatility contractions on a lower timeframe.

Trading off weekly levels is a great way to improve the probability of a trade working since the weekly players are involved as well not just the daily and intraday traders.

I hope you all found this short article helpful!

If you did please Upvote, Repost, and reply with your thoughts

Also tag anyone else who you think would find it interesting. Take care!
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Great post Richard, I’ve moved a lot of my work to weekly charts now since reading Weinstein. It has given me a lot more mind space and clarity. I used to be engrossed in 5 and 15 min charts but now the lowest I’d go is a H1 and that would be rare. It’s all weekly and daily.

One question regarding the moving averages do you have any opinion on using 10EMA & 30EMA rather than Simple? I know it probably doesn’t matter overly but I find it hard to see a definitive thought on it.
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Josh Kohn-Lindquist's avatar
$17.2m follower assets
4 Stocks I'm Holding Forever
I recently wrote about four companies that I plan to hold forever thanks to the long-term megatrends working in their favor.


A key takeaway for each:

$TTD: $NFLX turning to ad-supported streaming strengthens Trade Desk's incredible potential as it looks to dominate digital advertising.

$ZM: Zoom's optionality is finally taking shape, with its younger, non-Rooms products now accounting for over 10% of total revenues combined. Still very early -- but promising.

$DOCN: DO gets option-like potential from its customers as it joins them in their infancy and grows alongside them. Due to their massive size, $AMZN, $GOOG, and $MSFT don't usually touch this startup and small business niche.

$SEDG: If ever there was a company with clear megatrends working in its favor, it'd be SolarEdge. With solar power generation expected to 9x by 2050, SE's leadership position making inverters and power optimizers makes them critical to this expected growth.
Which stock will perform the best of this group through 2040?
20%SolarEdge
5%DigitalOcean
30%Zoom
45%Trade Desk
20 VotesPoll ended on: 06/10/22
Irish Born Investor's avatar
$16.7m follower assets
6th June 2022 - Trading Journal
News: I am delighted to have partnered with Interactive Brokers for for the next few months. I use IBKR as my main brokerage having tried many others including Degiro, Tastyworks, Trading212. For a trader or investor based in Europe it is by far the most powerful and professional platform to use long term in my opinion. I'll be writing some more about it's pros and cons going forward but for now if anyone has any questions please feel free to DM me or comment below. You can check out their platform here: Interactive Brokers - Please note I do not receive any bonus or referral if you sign up, I will speak honestly about my experience (good and bad) with the platform and others. Thanks for the support!

Recap from last week: My better half had an appendicitis last week so I was trading minimally and didn't have time to do my write ups. On Friday 3rd June I traded $HDSN & $SHLX. On the former I was stopped out as it reversed quickly. In hindsight the volume wasn't there. I'm still in $SHLX from $14.39 with a stop at $13.80. So far it hasn't made the move I wanted but it's in a strong sector with a good setup.
I did not do much work last week except work on some scans and I also want to streamline my watchlists a bit better. I currently use TC2000 & Tradingview. I love tradingview for many things but they fall down with scans and the speed at which you can go through watchlists. I think I need to have only my focus list on there and use TC2000 for everything else including my sector lists. This will require a bit of work.
Situational awareness:
Cautiously Bullish on Monday. The market is coiling for an explosive move one way or the other. I believe that will be upward but my belief is of course weakly held.
Pre Market Work:
Chinese names rallying early pre market. I had been keeping an eye on $PDD other names with a lot of volume were $FUTU & $DQ. Regardless of big moves none of these names currently meet my criteria to trade in terms of a proper setup. I am also on the fence on whether I would even want to trade Chinese names, however it must be considered if they show significant accumulation and trend. So far they have not in my opinion.
$ASH a Chemical name had a nice setup and a strong pre-market volume. It also had a positive shake out in the last week or so testing the 200 Day twice with a strong bounce on the second time around. Some other notable names I've mentioned recently were $BMBL & $DOCN both of which are continuing to set up well for a longer outlook.
Trading day:
Identified in Pre-Market I took $ASH at $111.20.

Notice the higher than average volume on the day + RS + Price breakout. To me this looks like a positive name to be long despite the fade with the market late in the day.
Shell stayed largely flat for the day and $ZM. was all over the place but it's range is still very tight with the moving averages converging more each day. On a breakout from this point I would considering adding to my call spread position which is currently slightly in the green. Notice the volume dry up in orange.

End of day Thoughts:
As mentioned in pre market I certainly wish to improve my watchlists. They're pretty good but some fine tuning and ability to scroll through them quickly would help. I also want to develop my scans a bit more in TC2000.
Notes & Open Trades:
  • $SHLX - 5% Stock Position - Entry $14.39 - Stop: $13.80
  • $ASH - 5% Stock Position - Entry $111.20 - Stop: $104
  • $ZM - August 19th $150/$170 Bull Call Spread - Cost $1.49 per contract
Please note I operate my risk with options that I can lose 100% of the premium. This is the safest way to trade them in my opinion. Even if I cut at 50% once I am setup to lose 100% within my risk threshold then I will stay ahead of my required R:R.
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Jeff Sanders's avatar
$10.2m follower assets
Portfolio at month-end of May
Exited: $U, $NET, $UPST, $SOFI
Added more to: $TTD, $DOCS , $DOCN, $AMD , and $ETSY
Planning to add more $AMZN on Friday and $GOOGL next month.
Attempted to de-risk and free up cash and added to higher conviction names. SPAXX represents cash position on Fidelity platform.
Samuel Meciar's avatar
$16.9m follower assets
Portfolio changes - update 10
Hello friends, I got an update for you, now with a rounded number

I decided to sell $AFRM + $PAYC, and here's my thinking:

  • I get a pretty decent exposure to $AFRM anyways through $SHOP, not only are they a sole processor for Shop Pay installments but are also invested in $AFRM, own about 7% of the shares (Class A+B combined)
  • I recognize the power of $SQ's Afterpay in combination with CApp and Square after I watched Block's Investor Day, it's just one well put ecosystem. Afterpay is also a bit larger in terms of GMV and has superior margins.

My overall plan is to just add to $SQ and $SHOP and chill.

When it comes to $PAYC I recognize the power of Square Payroll and HR solutions in combination with the whole ecosystem especially as they move more into Mid market, that's going to be interesting. Therefore it just makes sense for me to consolidate here.

I'm also selling $ZI $DOCN, no specific reason really, just want to move my capital into my highest conviction names.

Instead I went on a buying spree and got some $QCOM $RBLX $TWLO $SQ $SHOP $COUR $FVRR $HIMS $ADBE and $COIN.

Wrapping up, all $AFRM $DOCN $PAYC $ZI are great companies in my view, but like I said, it makes sense for me to consolidate, especially as I favor optionality over specialization at this point in time, while still maintaining an exposure to those players/spaces without further fragmentation.
Josh Kohn-Lindquist's avatar
$17.2m follower assets
5 Thursday Additions and 2 New Positions
I added to my core 34 position in $GLBE but also made secondary purchases in $COIN and $W since the markets have throttled them.

I also started new watchlist positions in $IDXX and $DXCM.

Last but not least, I bought some $DOCN and $LTCH for my daughter's account. Technically, DigitalOcean is one of my core 34 holdings, but it was for her account today.

Over time, I will continue adding to Global-e Online as its position needs to grow. Coinbase and Wayfair may get one more tiny purchasing round, but much farther down the road.

Idexx Labs and Dexcom fascinate me, so I just wanted to remember them.
Who performs the best over the next decade?
50%Coinbase
13%Wayfair
27%Idexx Labs
9%Dexcom
22 VotesPoll ended on: 05/22/22
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