The monthly and weekly charts hold the most weight of any timeframe. Major institutions, hedge funds, and central banks make decisions based on these charts. When price reaches a monthly swing high or key level, the reaction can last for weeks. Learning to identify these levels is non-negotiable.
Monthly chart defines the macro trend — is the asset bullish, bearish, or ranging long-term?
Weekly levels often align with monthly — double-confirmation makes them even stronger
Long upper wicks on monthly candles at resistance = massive selling pressure
Mark levels and drop to daily to see how price behaves around them
Lesson
Monthly Levels Hold Weight on Daily Charts
A support or resistance level identified on the monthly chart will be visible — and respected — on the daily chart. The process: identify the monthly level → drop to weekly → drop to daily → look for candle structure confirmation.
Monthly highs and lows act as major swing points — mark them first
When price reaches a monthly resistance on the daily chart, look for rejection wicks
Long upper wicks on daily candles AT monthly resistance = sellers are present, consider short/exit
S/R flips on monthly charts are the highest conviction entry zones in all of trading
The daily chart can show multiple failed attempts at a monthly level before a breakout
Practice: mark monthly levels, then look at daily candles at those exact levels — train your eye
Use TradingView visibility settings to overlay monthly S/R lines on your daily chart
Check Yourself
On the daily chart, multiple candles are forming long upper wicks at a key monthly resistance level (~$425). The most recent daily candle closed well below the level. What does this signal?
● Sellers are defending the monthly resistance — potential short/exit
● Buyers are accumulating just below resistance — expect a breakout
● Inconclusive — daily candles can't tell you anything about monthly
Answer it (with a live chart) in the interactive lesson.
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