Candlestick charts with Weekly timeframe
Candlestick charts work in all time frames. You can use them on Intra-day charts, daily, weekly or even monthly charts. They are effective in all those cases. Because the inherent psychology behind their construction remains the same. The human emotions which are depicted in a visual formation remain the same. All the candlestick signals work the same way in all time frames.
For a weekly time frame chart, each candle will be built with the following information:
-the high of the week,
-the low of the week,
-the close for the week and
-the open for the week.
The following chart shows Invitrogen during 2005. We can see the downtrend starting with a Bearish Harami. The reversal occurs with a Bullish Harami. The stock then starts a nice uptrend. A candlestick investor/trader could have shorted IVGN around $67 and covered around $51 for a tidy profit. One could have then bought the stock around $51 and sold around $68 for another handsome profit.
No matter what your trading time frame is, learning candlestick signals will give you an edge over competition.
Chart courtesy stockcharts.com