The first requirement in applying MARS trading is using the weekly chart.
Why the weekly chart:
1. Easy to follow
The weekly chart shows a candle to reflect one week. One candle one week means we need only look at price charts ONCE a week. Thus you will be easy to follow price movement.
2. Summarizes the price movement for one week
If you are trading using a 4 hours time frame early, then there will be 30 candlestick every week. If you use a daily time frame, then there will be 5 candlestick. And if you use the weekly time frame, there will be only one candle stick for each week. For example, I use the price movement of ERUJPY 4-8 January 2016.
a. EURJPY weekly chart
b. EURJPY daily chart
c. EURJPY 4 hour chart
3. Avoid traders from temporary movement caused by economic sentiment.
Each week there is a lot of economic releases from different countries. I will use FXstreet economic calendar to show you. Next week:
a. Kamis 14 Januari 2015
b. Jumat 15 Januari 2015
On the day of Thursday, January 14, 2016 there are two countries with important economic indicator release, Australia and the United Kingdom (which has dark red exclamation mark). The next day, Friday, January 15, 2016 the turn of the United States. So if you can not read the economic indicators correctly (I also can not) -because the limitations of information and knowledge- example, based on indicators of the Australian release you sell the AUDUSD but the next day at the time of release of the Americans instead we have to buy the AUDUSD.
This is where the importance of the weekly chart, the weekly chart erase the temporary movement from your screen, helps your summarize what happened during the week and most importantly gives you an idea what is thought by the big players.
have a nice trade!
