The Importance of Monthly & Weekly Candle Closings

Retail traders often over-focus on 5-minute or daily charts — but professionals look at weekly and monthly candles to identify long-term structure. 🔹 Why weekly/monthly charts matter? They filter out market noise They highlight macro trend, not intraday fluctuations Long-term investors and mutual funds base many decisions on these timeframes ✅ What to watch for: Monthly closing above previous swing high = Long-term breakout Weekly bullish engulfing at 200 DMA = Strong accumulation zone Price rejecting monthly resistance with long wick = Potential reversal 📌 Example: Stock X had ₹880 as monthly resistance for 6 months. It gave a monthly close at ₹902 with 2x volume. Next month, it rallied to ₹1040. 🧠 As a Research Analyst, I always align short-term trades with higher time frame confirmation for maximum conviction