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In technical analysis, a weekly timeframe refers to the use of weekly candle charts to examine the price activity of a securities or market. A weekly chart depicts a security’s price movement over a one-week period, with each candle indicating one week of trading activity. The candle features a body that shows the week’s starting and closing prices, as well as upper and lower shadows that show the highest and lowest prices attained throughout the week.

A weekly chart provides a better insight of the general market trend and a clearer picture of long-term price movement than a daily chart. Weekly charts give a more consistent and dependable portrayal of the market, whereas daily charts are more volatile and vulnerable to short-term swings. Weekly charts may also assist traders in identifying significant levels of support and resistance, as well as patterns like head and shoulders and moving averages.

As for the above Nasdaq technical analysis on the weekly chart above, It is critical to watch the weekly candle close, especially if it crosses a resistance level, since it might suggest a shift in market mood. A closure above a resistance level might indicate a positive trend and a chance for traders to purchase. A closing below a support level, on the other hand, might suggest a bearish trend and a potential selling opportunity. If we do not wait for the close, weekly canldes can close with a wick above, and fake us out!

When a bullish investor or trader waits for two weekly bullish successive candles, rather than simply one, his or her chances of profit improve. This is due to the fact that successive bullish candles might suggest a strong bullish trend and a higher possibility of the price rising further. Furthermore, spotting two consecutive bullish candles might offer confirmation of a breakout above a barrier level, enhancing the likelihood of profit.

Finally, employing weekly charts in technical analysis can give useful insights into a security’s or market’s long-term price movement. Traders may make better educated selections by paying attention to important levels of support and resistance, as well as patterns and successive candles. Watch the Nasdaq futures weekly closing above 12000, and those seeking a strong confirmation that we are done with this bear market, most likely, watch the close above 12339.

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