Weekly Price Action Trade Ideas – 29th of July to 2nd of August (2024)

FAQs

What is the 4 week rule in trading? ›

The weekly rule system is a trend-following trading system. One example of the system is the four-week rule (4WR). Traders will buy when prices reach a new four-week high or sell when prices reach a new four-week low. The weekly rule trading system was established by Richard Donchian.

What is the best time frame for trading weekly options? The best time frame primarily depends on your trading strategy. For example, a high frequency trader, you should use a 30 second to 1 minute time frame whereas if you are a positional trader, a 30-to-15-minute time frame is a better option.

The most commonly used price action indicator is the study of price bars or candlesticks which give details such as the open and closing price of a market and its high and low price levels during a specific time period. Analysing this information is the core of price action trading.

Key elements of a successful weekly time frame strategy

Incorporating a forex weekly chart strategy necessitates focusing on identifying the prevailing trend. Technical indicators, such as Moving Averages, MACD, and RSI, serve as valuable tools for trend analysis on the weekly time frame.

What is the 3 5 7 rule in trading? A risk management principle known as the “3-5-7” rule in trading advises diversifying one's financial holdings to reduce risk. The 3% rule states that you should never risk more than 3% of your whole trading capital on a single deal.

There's a saying in the industry that's fairly common, the '90-90-90 rule'. It goes along the lines, 90% of traders lose 90% of their money in the first 90 days.

The Moving Average Convergence Divergence (MACD) indicator is often considered one of the most accurate technical indicators. That is because it uses a combination of moving averages to spot potential buy and sell signals.

1. Moving Average Indicator (MA) The moving average indicator is one of the most popular technical indicators and it's used to identify a price trend in the market. For example, if the short-term MA crosses over the long-term MA, this is an indication that there might be an upward trend coming up in the future.

The 7 week rule was shared by Gil Morales in his book “Trade Like an O'Neil Disciple”. The rule is described as: Stocks that have shown a tendency to “obey” or “respect” the 10-day moving average for at least 7 weeks in an uptrend should often be sold once the stock violates the 10-day line.

What is the 2 hour trading strategy? ›

The term “2-hour trading strategy” describes a time-based approach to trading in which a trader actively buys and sells financial assets within a two-hour window, usually during the hours of the market that are the most volatile. It does not refer to a specific method in and of itself.

If you make four or more day trades over the course of any five business days, and those trades account for more than 6% of your account activity over the period, your margin account will be flagged as a pattern day trader account.

On average, day traders with $10,000 accounts can make $200-$600 per day, with skilled traders aiming for 2%-5% returns daily. So, it is possible to achieve a daily profit of $200 to $600 with a $10,000 account.

Just as how long you have to wait to sell a stock after buying it, there is no legal limit on the number of times you can buy and sell the same stock in one day. Again, though, your broker may impose restrictions based on your account type, available capital, and regulatory rules regarding 'Pattern Day Traders'.

Under the PDT rules, you must maintain minimum equity of $25,000 in your margin account prior to day trading on any given day. If the account falls below the $25,000 requirement, you cannot day trade until you are back at or above the $25,000 minimum.