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Why Is the Weekly Chart View Invaluable?

Why Is the Weekly Chart View Invaluable?
September 22, 2021 Martha Stokes CMT

Why Is the Weekly Chart View Invaluable?

For Interpreting What Price Will Do After Stock Volume Spikes

The chart example below with a Daily Chart View shows that High Frequency Traders HFT caused a huge white candlestick and stock Volume spike, as indicated by the vertical red line on the right. Since then, this stock has been in a sideways price action that has slowly slipped down to the previous high’s support level, which is underlined in black and indicated by the horizontal red arrow.

What has happened is that High Frequency Trading buying stock Volume triggered Smaller Fund Volume Weighted Average Price (VWAP) orders. This caused the Balance of Power indicator, which tracks large-lot versus small-lot activity, to spike green as seen in the bottom chart window.

The Weekly Chart View below shows far more information that can help a trader determine which Trading Style to use; for example, whether Swing Trading or Position Trading would be best. Swing Traders and Position Traders use completely different entry signals, support levels, and exit techniques.

Knowing which Trading Style to use for this particular stock makes all the difference in whether the trade will be successful with high profits or if it will have weak profits or a loss.

The Weekly Chart View is invaluable because it provides information such as the following:

  1. Support levels below the current price.
  2. How long the stock tends to move sideways.
  3. Whether slipping down after a big move is common or rare.
  4. How often High Frequency Traders HFT trade this stock.
  5. How far price can move up or down before it runs into support or resistance levels.
  6. The upside target Price Gain Potential for buying a stock, and the downside Price Gain Potential for a sell short.
  7. Where price will run into strong resistance as it moves up.
  8. Whether Dark Pool Quiet Accumulation or Dark Pool Quiet Distribution has occurred during the move up out of the bottom or recently in the past few weeks.
  9. Whether the bottoming formation is completed, which will indicate whether this current sideways action will drop further or not.
  10. The strength of stock Volume over the past few weeks.

Go back now and look at the Daily Chart View again, which is the first chart example above, and see that the stock is currently behaving similarly to the way it moved previously.

Summary

Volume Indicator Webinar

Learn why volume is as important as price analysis, and why volume leads price. Learn MORE

High Frequency Trading

Webinar to learn how to find and track price patterns that trigger High Frequency Traders, and when to exit a trade High Frequency Traders driven. Learn MORE

Balance of Power Webinar

Learn leading indicator patterns for Dark Pool Buy Zones, bottom formations, and to get ahead of huge gaps or run up. Click HERE

Stocks tend to repeat patterns, especially if stock Volume and Balance of Power are very similar between time periods. Knowing this information helps Retail Traders decide if the stock is right for their Trading Style, their intent of the trade, which is buying long or selling short, how much risk is in the trade, the upside gain potential, when to enter the stock, and how long to hold the stock. The Weekly Chart View is invaluable since it helps define and clarify many aspects of the daily price action.

Go to the TC2000 Learning Center to watch training webinars on Time Segmented Volume TSV, Balance of Power BOP, Trade Management Planner, and Pro Style TC2000 Scans.

TC2000 Tools – TechniTrader custom scans and chart layouts. How to interpret, read, and use TC2000 Indicators. Trading tools and support.

Trade Wisely,

Martha Stokes CMT

TechniTrader technical analysis using TC2000 charts, courtesy of Worden Bros.

Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses

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Martha Stokes, CMT is co-founder and CEO of TechniTrader. She is a retired professional Buy-Side Analyst and was awarded the Chartered Market Technician designation for her thesis, "Cycle Evolution Theory." Martha is a passionate teacher of the financial markets and a prolific writer, having created over 40 stock, option, and financial market courses.