📊 Price Patterns on the Weekly Frame
They are formations on the chart that help predict market movement, including:
1. Strong Pattern:
- 🟢 Green Candle (Close above Open): Indicates buyers' dominance.
- 🔴 Red Candle (Close below Open): Indicates sellers' dominance.
- 📍 Close above/below half of the previous red candle
- If the green candle closes above half of the previous red candle ➔ 📈 Bullish signal
- If the green candle closes below half of the previous red candle ➔ 📉 Bearish signal
📍 Support and Resistance lines
- Support:
Area where the drop stops due to increased demand (as shown in the image).
Example:
```
Price: $100 ➔ $90 ➔ $80 ---- (Support Line)
The price responds to $80 and starts to rise 📈.
```
- Resistance:
Area where the rise stops due to increased supply.
Example:
```
Price: $120 ---- (Resistance Line) ➔ $110 ➔ $100.
```
🕰️ Importance of the Weekly Timeframe
- Provides a clearer view of the overall trend compared to daily frames.
- Reduces the impact of short-term volatility (price noise).
- Example:
```
🟢 Weekly close above $50 ➔ Confirmation of continued rise.
🔴 Weekly close below $50 ➔ Warning of trend reversal.
```
📌 Practical Tips:
1. Indicator Integration:
- Use indicators like moving averages (📉 50 days, 📈 200 days) to confirm the pattern.
2. Risk Management:
- Place the Stop Loss just below the support line.
3. Contextual Trading:
- If the market is in an upward direction ➔ Focus on buying opportunities at support.
🎯 Illustration:
```
📈 Upward Trend
|
|🟢
|---- (Support)
|🔴
|
``` 