The Weekly Chart Strategy: 4 Must-Master Tactics for Stock Traders

The Weekly Chart Strategy: 4 Must-Master Tactics for Stock Traders

 

To all stock trading friends, if you can truly understand what I'm about to say, you'll likely never worry about making a living for the rest of your life. Today, you must listen carefully to these four methods and take notes to keep them in mind: The essence of stock trading is like a "drum-passing game" — to avoid being the one left holding the final drumstick, you must choose stocks with incremental capital inflows. But how do you judge if there's incremental capital?

 

The weekly chart strategy I'm sharing today is the key to breaking through your trading slump in the second half of the year. Why? Because the weekly chart is the real battlefield for big capital, while daily charts are mostly a common tactic used by major players to trap retail investors. Intraday charts are even less reliable. Only when you fully grasp the weekly chart can you truly cross the threshold of professional trading and understand the saying: "No gains for weeks, but one successful trade feeds you for three years."

 

This strategy was taught to me by a 70-year-old veteran from the first generation of Guangdong-based hot money traders. When it comes to authoritative figures in the stock market, he is truly a "grand master" — even many top-tier hot money traders on Shennan Road are his disciples. I still use this strategy today; it's simple, practical, and especially suitable for growing small capital into larger sums. Today, I'll explain it in detail, and even beginners who've only been in the market for a month will be able to understand it.

 

1. Accumulated Volume on Weekly Charts – Buy on Pullbacks

 

"Accumulated volume" here doesn't refer to a single week's volume, but three consecutive weeks of moderately increasing trading volume, piling up like small hills. Don't panic about pullbacks with shrinking volume — that's just the main force taking a short break. As long as the trend of accumulated volume remains intact, it means real capital is flowing in. The volume on daily charts can only deceive beginners; in front of weekly accumulated volume, all the main force's fake moves are exposed.

 

2. Bullish Alignment of Weekly Moving Averages – The 20-Week MA is Critical

 

A golden cross of the 5-week MA is just the start; the 20-week MA is the real signal that a rally begins. When the 5-week MA and 20-week MA diverge upward like stairs (with a small deviation rate) and candlesticks move up along these moving averages, it's a typical sign that big capital is entering in an orderly manner. As long as the volume remains moderate (no volume spike), hold firmly — without extremely high volume, the main force has no room to exit.

 

3. Weekly Chart Breakout from a Consolidation Range – Catch the "General Offensive" Signal

 

Don't lose patience if a stock consolidates sideways for weeks or even months — that's the main force quietly accumulating chips. Once a week sees a large bullish candlestick that breaks through the upper edge of the consolidation range like a sharp knife, this is the main force's "general offensive signal." It means the main force has accumulated enough chips, and incremental capital is about to pour in. The more stable the volume was before the breakout, the more profitable and longer-lasting the rally will be.

 

4. Weekly Chart Stabilizing Above the 5-Week MA – Find Swing Entry Points

 

If a stock has been oscillating downward and never broken above the 5-week MA, but suddenly stops making new lows for three consecutive weeks and stands firmly above the 5-week MA with increased volume, this is your entry point — the start of a swing trade. Don't doubt it: Many major swings start from being ignored at low prices and end up being chased by the crowd. This is a typical trend reversal signal; mastering it will double your trading efficiency.

 

I'm confident that if you truly internalize these four tactics, stock selection won't be as complicated as you think. Just follow the "big team" and capital flows, and you'll find the market is full of predictable patterns. Weekly chart swings focus on big trends and profit from large price moves. If you can't remember it all at once, save this post and review it when you have time. Practice makes perfect, and it will definitely improve your trading results. I still use this strategy today — it's simple, practical, and perfect for growing small capital into bigger sums. Even beginners with just one month of market experience can master it.