Forex for a trader
Does forex work on weekends

Does forex work on weekendsDo foreign exchange rates change over the weekend? Where can I see them? I need to convert tens of thousands of dollars from US to Canadian dollars . I was watching rates today, and then they stopped changing when markets closed at 5 pm. They will start changing again Monday morning, but I am wondering if I should go ahead and do the transfer now at today's closing rate. Over the weekend there's got to be a market somewhere that's still trading, or some way that I can detect if the rate at opening Monday morning will be better or worse than today's close. Thanks in advance! Banks, trading offices, and stock markets worldwide close on weekends. However, the forex rates still change in real-time over the weekends. It's just the volatility and liquidity are way too low, as not many people do the exchange on weekends unless it's an emergency. For most forex brokers, it's not worth it to pay employees double-fold to work on weekends to accommodate a few weekend traders. If 247 trading is your requirement, you might want to consider Oanda since their trading desk opens on weekends. You'll notice the spreads are widen by several pips.

And there is a rate for May 30, but it's just one rate for the whole day; it hasn't been changing during the day. Is there a site that shows what the real-time rate is? There are some brokers who allow you to trade on weekends also. However I heard that the spread is higher in weekends. Never experimented this myself. Good discussion. I just want to ask how can we calculate real time rate? What are the steps. Can you give detail information on rating. Thanks in advance. Just Because Trading is Closed, It Doesn’t Mean You Have to Be. by James Stanley , Currency Strategist. Price action and Macro.

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One of the greatest aspects of the FX Market is that it is a true 24 hour a day market. As business is closing at 5:00 PM Eastern Time in New York during the business week, Sydney is preparing to open for the day; and then Tokyo; and then London; followed by the US. As a speculator in the FX Market, I have access to all of these market centers through my trading platform. Traders wishing to speculate at all hours of the night can certainly do so. This allows traders to arrange their schedules and working hours around the commitments in their lives; whether that be taking care of children or working at a ‘day job.’ For traders like me that think about prices and charts all day, this can become a comfort blanket. Can’t get to sleep? That’s ok; the trading platform has numerous currency pairs with prices moving around-the-clock. Sleep can wait. You have plans with a friend, and they cancel? Who cares? Charts can furnish a much more productive use of time, even if it’s just practicing on the demo. The benefit of this relationship can also be a challenge. After getting acclimated to constant opportunity; of continuous access to the largest market in the world, those periods in which I cannot trade become especially torturous. And on most retail FX platforms, that time is the weekend.

But just because trading is closed – it doesn’t mean you have to be. This is where practice can come into play. The weekends are opportunity; an opportunity to prepare for, and strategize around the week ahead. Below is a list of potential activities for the Weekend Warrior; the trader that doesn’t want to take weekends off. This is one of the more common ways to spend trading time over weekends when most FX brokers are closed for trading. Many education services are open while trading may be closed, and this allows traders to access materials for weekend study. I encourage you to revisit these materials. Trading education can work much like education in general, in which the more experience and knowledge that we have gained can drastically enhance the manner in which we perceive the material. I recently re-read Moby Dick by Herman Melville, and was able to understand the book on an entirely different level than when I had read it in 7 th grade. When I read the book in 7 th grade, it was a story about a man and a whale. After re-reading as an adult, I can understand the layers of symbolism intended by Herman Melville. The book is now entirely different after I was able to incorporate these elements and appreciate the work for the masterpiece that it really is. This is my personal favorite activity to fill time on the weekends. The process of Manual Back-Testing involves ‘simulating,’ a market environment of past, historical prices. This can function as an excellent way of testing a strategy before actually employing it in live conditions. The process of Manual Back-Testing involves literally scrolling to an earlier date and time on the chart (to a period in which you are unfamiliar with price action), ‘locking the view,’ and scrolling forward one candle at a time to ‘simulate,’ price action.

The Trading Station 2 platform is built with this capability in place, by default. Now, an important note is in order: Just because a strategy performed in a particular manner in the past, it doesn’t mean that it will perform in that way in the future. The goal of Manually Back-Testing is to simulate the variability that happens when we trade live, the fact that nobody knows what the next tick is. If you would like more information on Manual Back-Testing, the article I had authored ‘Manual Back-Testing; Practicing the Art of Trading,’ should help with some additional information. Strategizing for the Week Ahead. One of the benefits of trading being closed is the fact that it allows us, as traders, to take a step back to evaluate the week that has just passed. This can be a phenomenal time to account for the week’s trading activities and grade performance. Many traders keeping and following a ‘Trading Plan,’ may use this time to review, edit, and modify their plans based on recent observations. If you don’t yet have a Trading Plan, the weekend can be a great time to build one. The article linked below can certainly help in that process: For traders that are already comfortable with their plan, they can look to the week ahead in an effort to best focus their approaches given the expected economic docket. The DailyFX Economic Calendar allows for traders to organize events based on release date, importance, and currency pair. Below is an example of a filtered Economic Calendar. In this particular case, I am only looking at European, Japanese, and American economic releases deemed of ‘high importance.

’ The filter button, located to the top right of the calendar, includes the areas with which I can specify what data I want to see. By analyzing the scheduled slate of announcements, I can begin building in expectations for which strategies might be operative given the expected news. The economic calendar is another service that is available around-the-clock, 365 days a year whether trading is open or not. You are more than welcome to navigate there from the link below to begin strategizing for the week ahead. --- Written by James B. Stanley. To contact James Stanley, please email [email protected] Com. You can follow James on Twitter @JStanleyFX. To join James Stanley’s distribution list, please click here. DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. How does the foreign exchange market trade 24 hours a day? The forex market is the largest financial market in the world, trading around $1.5 trillion each day. Trading in the forex is not done at one central location, but is conducted between participants by phone and electronic communication networks (ECNs) in various markets around the world. The market is open 24 hours a day from 5 p. m. EST on Sunday until 4 p. m. EST on Friday because currencies are in high demand. The international scope of currency trading means that there are always traders across the globe who are making and meeting demands for a particular currency. Note: If you're interested in day trading in the forex market, Investopedia's Forex Trading For Beginners course provides an excellent introduction to day trading to help you get started on the right foot. Currency is also needed around the world for international trade, by central banks and global businesses.

Central banks have particularly relied on foreign-exchange markets since 1971 — when fixed-currency markets ceased to exist because the gold standard was dropped. Since that time, most international currencies have been "floated" rather than tied to the value of gold. Economic and political instability and infinite other perpetual changes also affect the currency markets. Central banks seek to stabilize their country's currency by trading it on the open market and keeping a relative value compared to other world currencies. Businesses that operate in multiple countries seek to mitigate the risks of doing business in foreign markets and hedge currency risk. Businesses enter into currency swaps to hedge risk which gives them the right, but not necessarily the obligation, to buy a set amount of a foreign currency for a set price in another currency at a date in the future. They are limiting their exposure to large fluctuations in currency valuations through this strategy. The ability of the forex to trade over a 24-hour period is due in part to different international time zones and the fact trades are conducted over a network of computers, rather than any one physical exchange that closes at a particular time. For instance, when you hear that the U. S. dollar closed at a certain rate, it simply means that that was the rate at market close in New York. That is because currency continues to be traded around the world long after New York's close, unlike securities. Securities such as domestic stocks, bonds and commodities are not as relevant or in need on the international stage and thus are not required to trade beyond the standard business day in the issuer's home country. The demand for trade in these markets is not high enough to justify opening 24 hours a day due to the focus on the domestic market, meaning that it is likely that few shares would be traded at 3 a. m. in the U. S. The forex market can be split into three main regions: Australasia, Europe and North America, with several major financial centers within each of these main areas. For example, Europe is comprised of major financial centers such as London, Paris, Frankfurt and Zurich. Banks, institutions and dealers all conduct forex trading for themselves and their clients in each of these markets.

Each day of forex trading starts with the opening of the Australasia area, followed by Europe and then North America. As one region's markets close another opens, or has already opened, and continues to trade in the forex market. These markets will often overlap for a few hours, providing some of the most active period of forex trading. So for example, if a forex trader in Australia wakes up at 3 a. m. and wants to trade currency, they will be unable to do so through forex dealers located in Australasia, but they can make as many trades as they want through European or North American dealers. Currency is a global necessity for central banks, international trade and global businesses, and therefore requires a 24-hour market to satisfy the need for transactions across various time zones. In sum, it's safe to assume that there is no point during the trading week that a participant in the forex market will not potentially make a currency trade. Does forex work on weekends. Some Feedback from traders in the first weekend after the Launch which did not have many weekend gaps:- “I am happy to report that the Weekend Gap EA took 8 trades, 7 Winners and 1 Loser. All the default settings.

8.2% profit. Very good start! “– S on the Forum “6 trades 6 wins” - Email received “I'm not sure if I was just lucky, however I had the EA setup on 13 pairs, with the default settings. I skipped the 2 CHF pairs from the website list, as I refuse to trade anything CHF, but added USDCAD. The EA opened 8 trades for 7 wins, and a gain after commissions of just under 10%.” From the Forum “Out of 14 charts, 9 positions opened, 8 were winners and 1 loss. Very impressed I'm going to love having this EA in my toolbox !” From the Forum “I got filled on 9 pairs, 7 winners and 2 losers all on default settings” - Email received. Results vary depending in broker used, currencies trades and setting used. What Are the Weekend Gaps in Forex Market? I am always asked about the weekend gaps, and whether we can trade them and make some money or not. This is a good chance to have a post about the gaps, because yesterday the forex market opened with some relatively big gaps with many of the currency pairs. First, let me tell you what a gap is and why they appear on the charts. Gap is an empty space you can see between two candlesticks or bars. It appears on the charts because of the price movement during the time that the chart had not been updated, like when the market is closed. “Gaps” are very common in the stock market, because unlike the forex market, the stock market is not open 24 hours per day, and for example the New York Stock Exchange (NYSE) opens at 9:30 a. m. and closes at 4:00 p. m. When the stock opens, there are visible differences between the yesterday’s close price and today’s open price. And this difference makes the gap. Look at the several gaps on the Netqin Mobile Inc daily chart (the black arrows).

These gaps are completely normal on the stock market, and you can see them with any stock instrument: Forex market is open 24 hours per day and 5 days per week. We can rarely see a gap during the forex market open time, unless a too strong price movement happens because of a too strong news release, otherwise we don’t see a gap. However, gaps are also very common in forex market to form, when the market is closed during the weekend. Most people think that the currency market (forex) is closed during the weekend, but this is not true. It is only closed to retails traders, but it is always open for the central banks and the related organizations. Currency transactions are always done electronically and can not be stopped even for one second. When the market is open and buying and selling are ongoing, then the price also goes up and down, because the price changes based on the supply and demand, and when there is supply and demand, the price changes also. That is why when the market opens to the retails traders on Sunday afternoon at 5pm EST, the price has a visible difference compared to the level it was closed on Friday afternoon. If the price opens higher than the Friday afternoon price, we will have a gap up. If it opens lower than the Friday afternoon price, we will have a gap down. Can We Make Money from the Price Gaps? I heard this the very first days I started learning to trade, that “the price always fills the gap”. It means if the price opens with a gap down, it will go up to cover or fill the gap between the Friday afternoon and the Sunday afternoon price.

If it opens with a gap up, then it will go down to fill the gap. I have seen that in many cases this is true and the price really fills the gap. Some traders use this to make money. When they see there is a gap up, they go short and wait for the price to fill the gap and then they get out. When there is a gap down, they go long and wait for the price to fill the gap and then they get out. I have never done that, and I don’t recommend you to do it too. Why? First of all, I don’t trade based on what people say. I trade based on what I see on the chart. I have to see a setup formed on the chart to enter the market. A gap doesn’t mean anything to me. People say the price always fills the gap, but I say what if it doesn’t? If you don’t believe me, just check the charts and see how many gaps there are (both the forex weekend gaps, and the gaps we have on the stocks charts) that are not filled. My other question from these people is that where should we place our stop loss? In many cases the price keeps on going against the gap before it turns around and fills the gap. And sometimes it never turns around to fill the gap. So the question is where should our position be stopped out? There is no rational and technical answer for this question. Therefore, I never trade the gaps. That is it. Am I Writing This Article to Tell You Not to Trade the Gaps? Yes, and no. Yes, because you have to know that you should not trade based on the rumors like what people say about the gaps. And no, because the most recent gaps that are appeared on the charts can create some strong candlestick patterns for us. Let’s start from USDCHF. USDCHF closed at 0.91357 last week. Last night, it opened at 0.91735 which is a 38 pips gap up. The current daily candlestick that opened at 0.91357 is going down to fill the gap. If it goes down and closes as a big bearish candlestick that covers some part of the previous candlestick’s body, we will have a strong Dark Cloud Cover: There is a 47 pips gap down on EURUSD charts too. It seems EURUSD is not eager to go up to fill the gap, the way that USDCHF is going down strongly. If the current EURUSD daily candlestick closes as a small candlestick without filling the gap, then we will somehow have a Bullish Abandoned Baby.

Of course for a Bullish Abandoned Baby we need a Doji, but it is still ok to have a small body. Bullish Abandoned Baby has to be confirmed by the next candlestick. However, if the last EURUSD daily candlestick goes up strongly and closes as a strong bullish candlestick, then we will have a Bullish Piercing or Engulfing pattern that doesn’t need to be confirmed by the next candlestick. In case of USDCHF, if it really closes as a strong Dark Cloud Cover or Bearish Engulfing pattern, then it will not need any confirmation and our trade setup is complete. We can not say anything for now. We have to wait for the candlesticks to close. There are big gaps with many of the other currency pairs like USDJPY, GBPJPY, USDCAD, EURGBP, GBPCHF, EURAUD and EURCAD. AUDJPY also opened with a 24 pips gap up and is going down now. I will close my second AUDJPY position if the current daily candlestick closes as a big bearish candlestick: Let’s wait and see. If you like to read more about the gaps, there are already some articles on LuckScout. Many of them are not written by me, but I am sure you will learn a lot reading them: Weekend Gaps and Your Pending, Stop Loss and Target Orders. Two weeks ago I talked about the weekend gaps, because some of the currency pairs opened with a relatively big gap at that time. To know what the weekend gaps are and how some traders trade them, and whether I recommend you to trade the weekend gaps or not, please read this article: What Are the Weekend Gaps? This weekend, the GBP cross currency pairs opened with an extraordinary big gaps.

GBPJPY opened with a 177 pips gap down, EURGBP with an 80 pips gap up, GBPCHF with a 152 pips gap down, GBPCAD with a 171 pips gap down, and GBPUSD with a 157 pips gap down. This unbelievable gap is related to GBP excessive weakness during the past several days. I don’t want to focus on the fundamental details of this event. Whatever the reason is, fortunately the gaps were all in our favourite direction with the positions we already had. We had short positions with GBPJPY, and the gap added 177 pips to our profit, and also made the market open below a support level which means GBPJPY can go even lower. Click on the image: And the GBPCAD 171 pips gap down took our short position to +860 pips profit: There is an important question regarding the weekend gaps. What will happen to our buysell pending orders including the stop loss and target orders when there is a weekend gap? Let me explain a little more what I mean by this question. We either have a position, and this position had a stop loss and target order, or we have some buysell pending orders to enter the market when the price reaches to the desired level. If we hold our positions and pending orders during the weekend, and then the market opens with a gap (either down or up), what will happen to our pending orders? Will they be triggered exactly where they are set, or they will be triggered where the market opens on Sunday afternoon? Here I have explained that the currency market is closed only to retail traders during the weekend, but it is always open 24 hours per day and 7 days per week. That is why we see a gap on our charts, when the market opens on Sunday afternoon EST. If the markets was also open to us during the weekend, then instead of the gaps, we would have candlesticks on our charts. It means when we have an open position during the weekend, the position is working, but we don’t see the changes. We see the new price only when the market opens on Sunday afternoon. Therefore, what happens while - for example - we have a GBPJPY long position at 171.208 and the stop loss is placed at 170.801 which is 40.7 pips below our entry, and then the market opens on Sunday afternoon at 169.764 which is 103 pips below our stop loss? As in reality the market is open during the weekend, but it is just our trading platform that doesn’t get updated, so our stop loss should be triggered exactly where it is set (170.801), and when the market opens on Sunday afternoon and our platform becomes updated, we will see that our position is stopped out and we have lost 40.7 pips.

Right? This is correct that in reality the market is open during the weekends, and so our position should be stopped out exactly like the price hits our stop loss during the weekdays that our platform updates normally. But this is not what we see on the platform when it becomes updated on Sunday afternoon. Our position will be closed where the market opens on Sunday afternoon, not where our stop loss is placed. This is an outrage, right? Yes, it is. But it is what it is. Here is the general role for the pending orders and the weekend gaps, no matter if your broker is a market maker or ECNSTP (read this): The pending orders, including the stop loss and target orders, will be triggered always where it is against you and in the broker’s favour. In this case, the difference of a market maker and ECNSTP broker is that with a market maker broker, the extra money you lose goes to the broker’s pocket, but with ECNSTP broker it goes to the liquidity provider’s pocket and the broker make no profit out of your loss (of course if it is a real ECNSTP broker, not a fake one). So here is something that will happen with different positions, stop loss and target orders, and pending orders: 1. You Have a Long Position: If the market opens below the stop loss on Sunday afternoon, then the position will be closed where the market is opened, not where the stop loss is set, and so, you will lose the stop loss plus the difference of the stop loss and the market open level (outrage). If the market opens above the target, then your position will be closed where the target is set, so that you will not gain more than your target (outrage). If the market opens between the stop loss and entry, then the position will remain open until you close it, or the price hits the target or stop loss while the market is running. If the market opens above your entry and below the target, then it will not be closed and will remain open until you close it, or the price hits the target or stop loss while the market is running. 2. You Have a Short Position: If the market opens above the stop loss on Sunday afternoon, then the position will be closed where the market is opened, not where the stop loss is set, and so, you will lose the stop loss plus the difference of the stop loss and the market open level (outrage). If the market opens below the target, then your position will be closed where the target is set, so that you will not gain more than your target (outrage). If the market opens between the stop loss and entry, then it will not be closed and will remain open until you close it, or the price hits the target or stop loss while the market is running. If the market opens below your entry and above the target, then it will not be closed and will remain open until you close it, or the price hits the target or stop loss while the market is running. 3. You Have a Buy Pending Order: If the market opens above your buy pending order, then you will enter where the market is opened, not where the order is set. It means your entry price will be higher than where you wanted to enter (outrage).

If the market opens below your buy pending order, then you will not enter, and your pending order will remain intact. 3. You Have a Sell Pending Order: If the market opens below your sell pending order, then you will enter where the market is opened, not where the order is set. It means your entry price will be lower than where you wanted to enter (outrage). If the market opens above your sell pending order, then you will not enter, and your pending order will remain intact. Note: The above “outrages” can be experienced with live trading, not demo trading. Does It Means that You Should Not Hold Your Positions and Pending Orders During the Weekends? This is what everybody may think, if he reads the above bad news. If we hold our positions during the weekend, and the market opens with a big gap against our position, then our loss will be much bigger than our stop loss. This is true, but the good news is that if you enter when there is a “strong setup”, then in most cases the weekend gap will not be against you, and will be in your favour. I showed you two examples at the beginning of this article, and you saw that the huge gaps we had this weekend, not only did not make any problems for us, but also made a lot more profit, because our positions were at the right direction. This is because of nothing, but taking the positions based on the strong setups. I wrote such a long story to emphasize on the importance of following of the strong setups and ignoring the weak and questionable ones. If you are new here on LuckScout, please follow the below articles to learn what I mean by “strong setups”. If you are worried about the pending orders, you can canceldelete all of them on Friday afternoon, and set the new ones after the market open on Sunday afternoon (of course if you still want to take those positions). So pending orders will not be any problems. There is another question left: What if the market opens with huge gap against us, even if our position is taken based on a very strong setup?

Everything is possible in this market and business. It is possible that the market opens with a huge gap against you, even when your position is taken based on the strongest trade setup ever. You can lose a lot. However, there are a few things you have to consider: Huge gaps rarely form on the markets, and they rarely can be against you when your position is taken based on a strong setup. The way that we manage our accounts and losses, we will not get hurt, even if we lose a lot because of a huge gap. Just before you go, did you check This System? Make sure to do it now, otherwise you will regret. The ‘Weekend’ Forex Traders Lifestyle (How & Why It Works) Some people hate working on the weekends but I love it, in fact, I look forward to it, here’s why… As a trader, I know it’s critically important that I am as prepared as possible for the upcoming trading week, and I have learned over my 15+ years in the market that the best time to do my market analysis and make trading decisions, is when the markets are closed. Of course, what I just described is the opposite of what most traders do; frantically checking the charts throughout the day during the week, hoping or praying and ultimately making terrible choices about when to enter and exit the market. Whereas, if they would just learn how to do their market analysis on the weekends and take the rest of the week off, they would not have to hope or pray because they would be strategically preempting their decisions and actions in the market with logic and objectivity. Now, I may be exaggerating slightly with “take the rest of the week off”, but what I mean is, most of your time spent in front of the charts should be on the weekend. During the week, I will monitor the market lightly each day, maybe 10 to 15 minutes at the start and end of the day. If there is something to do that meshes with my weekend-analysis, I will place the orders and walk the hell away from the charts until tomorrow. I DO NOT want to be consumed by the market or constantly staring at charts, instead, I want to be out enjoying the fruits of my craft (because being a trader rocks).

By the way, being out and enjoying your life will have the unintended benefit of helping you improve your trading results, because as I’ve discussed in-depth in an article on why you shouldn’t watch your trades, the less involved you are with your trades, the better your trading performance is likely to be. What is weekend market analysis? So, what does my weekend analysis look like? What do I ACTUALLY do, you might be wondering. I am going to explain it to you then show you on the charts later on… First off, 95% of my market analysis is done on the weekend and takes place on the weekly and daily chart time frame (I will explain more on this later). It’s no big secret, what I am doing is basically looking for key chart levels of support and resistance, swing highs and lows, event areas and daily chart price action signals (See linked terms if you are unsure what any of these things are). Essentially, what I am doing is reading the story on the chart and mapping the market from left to right. I am reading what has happened, what is happening and making a final decision of what I think might happen next (the upcoming week). I want to have all my key levels drawn in, my bias (bullish or bearish) written out along with the chart condition (uptrend, downtrend, large sideways range or tight choppy consolidation) as well as taking note of any imminent trade setups that I am looking at. WHY you should do your trading analysis on the weekends: Before I get into the step-by-step breakdown of how I analyze the markets on the weekend, I want to make sure you know why this concept is so powerful so you that you start putting it into practice and reaping the benefits of it as soon as possible: First off, end of week and end of day analysis obviously saves a lot of time compared to day trading, allowing us to truly enjoy the fruits of our craft, but this is not the main reason I do my analysis this way, not by a long-shot… You see, the end of the week means something in the market. In fact, it’s very important because it shows an entire 5 days or 1 week of trading in the market, showing who won the battle between bulls and bears that week.

The market will have shown part of its hand at week’s close and there is far more weight behind where the market closes on a Friday compared to any other day of the week. Note: This doesn’t mean “weekly chart trading”, it means END OF THE WEEK analysis; identifying the key levels and trend and if any trade signals formed over the previous week. In other words, using the weekly and daily chart to get the complete picture and then develop your approach from that. Another big reason why this end-of-week analysis approach works so well is that it contributes to a low frequency trading approach, something I have written about quite extensively in various lessons over the years. When you trade less, it improves your trading performance over the long-run, and there are many studies that show this. This is partially why the data shows that women make better traders than men; because they trade less frequently than men do as I explained in my recent article What is the weakest link in your trading? The market is slower than we think, meaning good trades take time to play out, and over time you will agree. You look back at trades you were in and think, “I should have held that longer”. This hindsight regret should teach you to hold trades longer and have some faith in your analysis. The end of week analysis will help you, and the end of day entries will further boost your performance and clarity, here is how I do my analysis…. Here is a summary version of my trading routine. My weekly and daily trading routine is a lot less complicated than you probably think. First off, as I’ve written about in a recent article on the power of trading routines, the most important thing to remember here is that all of this has become a HABIT for me. The routine of writing my weekly market commentary, which I started back in 2008, still helps me after all these years.

You must develop the proper trading habits if you want to become a successful trader, as in any other profession. The discussion that follows is basically a step-by-step explanation of how I create my weekly members market outlook, which, coincidentally, was something I was doing BEFORE I ever had any students. It should go without saying that this is something you should be doing too; creating your own weekly market outlook will provide you with a ‘road map’ to the market each week that will help guide you in making trade decisions in the ‘heat of the moment’. Just as a general in war preempts his strategy, so you must preempt your trading strategy so that you are not making impulsive decisions in the middle of a heated market move. Therefore, you often see me write in my market commentaries something like, “We will do this if this happens this week, or bullish above this level, wait for this to do that and to monitor XYZ level, etc”…I am laying out a road map so that you can preempt your trading week rather than making decisions in the ‘heat of battle’… Step 1. The very first thing you should know is that I don’t look at every Forex pair, not even close. I have a select number of my favorite Forex currency pairs that I follow and these are the ones I have open on my MetaTrader 4 trading platform and I really don’t look at any other ones. I do, of course, trade other markets, like Gold, Oil and several Stock Indices, but I am not trying to analyze and follow 30 different markets each week as many traders do, so keep that in mind. The first thing I do is open my charts and look at the weekly time frame to plot the key levels and to get a good bird’s eye view of the long-term market trend. In the chart example below, I have drawn in the key support and resistance levels and I’ve marked on the chart the obvious overall trend of the market, so you can see what I am thinking when I look at it. It’s important to know what the current long-term market condition is (trending up or down, sideways etc.), in this case the long-term trend is up, as we can see below. This fact, along with the key levels you plotted, will work to guide your trading decisions throughout the upcoming week, as we will see later… Here’s another example… Step 2. The next thing I do after having analyzed the weekly chart as discussed in Step 1, is to drill-down to the daily chart time frame, where we will do a few different things… We are drawing in any obvious support or resistance levels that perhaps were not obvious on the weekly chart.

We are identifying the near-term daily chart trend, so we can decide which direction we will look to trade for the upcoming week (this can be different than the weekly trend). Scan for any obvious price action signals for potential trade entries. Here’s how it looks on the daily chart of the same EURUSD weekly chart in the first image above… Note: If the daily chart is sideways, always refer up to the weekly chart for which direction you should look to trade in. So, if the daily chart is sideways or range-bound, but the weekly chart is in a long-term uptrend, then look to trade long. In the chart above, the trend was recently sideways but now is showing signs of switching to a downtrend following the recent close under support near 1.1660 – 1.1620. Here is the GBPUSD daily chart that follows the GBPUSD weekly chart view from Step 1. Notice, we have drawn in a near-term support zone that wasn’t visible on the weekly and we have marked a potential pin bar signal trade which we discussed in our recent weekly trade outlook. Note: If there are daily weekly signals there from the Friday’s close, then we plan a trade for the Monday of the next week, and if there isn’t just yet then we WAIT for the daily chart to show us something that following week. Also, the entries are all triggered by end of day on the daily chart, we aren’t taking weekly chart signals. But, if a weekly chart price action signal did form the previous week, that WOULD CERTAINLY influence our approach and decisions on the daily and even 4 hour or 1 hour chart for that next week. This article has given you a glimpse into how I do my weekly market analysis on the weekends. I hope now you can see that market analysis is actually not all that difficult, you really just need to make it into a routine so that routine develops into a habit. As I mentioned above, my weekly market commentary has become a habit for me, even if I had no students I would still be marking up the charts and making my weekly analysis on the weekend, because I know how important it is to my trading performance. Staying in-tune and in-touch with the market is critical to your trading success.

You must understand the ‘story’ the chart is telling you and the best way to do that is to do what I have outlined in this lesson. Therefore, my members trade setups commentary is a great tool for you to learn from. You are essentially ‘in the trenches’ with me as I walk through the charts and do my weekly analysis. My weekend market overview, as well as my members daily trade setups analysis will allow you to ‘look over my shoulders’ and see what I am seeing as the price action unfolds throughout the week. Most of the time I won’t do anything, because I prefer to not trade just any signal since I am waiting for the best setups. So, get used to being patient and make patience your best friend if you want to learn my trading approach. You see, I want to increase my probability of winning and that is why patience is something anybody that learns my style of trading must master. The act of trading only takes a small amount of time, so there is a lot of down-time that we can use to further our knowledge by reading, studying, and working to master our craft. I can’t spoon-feed you, but I can show you how I’m seeing things in the market via my trading course and members trade setups commentary.

My hope is that by taking advantage of these tools to ‘look over my shoulder’ as I carry out my chart analysis and plan trades, you will learn something and start putting all the pieces together so that one day you will be able to replicate the same or similar trading routine and achieve consistent trading success. LEAVE A COMMENT BELOW & TELL ME WHAT YOU THINK … Any questions or feedback? Contact me here. There is an excessive amount of traffic coming from your Region. What may be causing this? You are attempting to access this page via a Webhosting Account Scripted access to public pages is not allowed. You are accessing the web via a proxy. If you are using a public proxy, you may wish to switch to another or disable it. If you believe your ISP is using a transparent proxy, please let us know.

You or someone on your network is running a bot to crawl our site. Please contact your Network Administrator if you believe this to be the case. We just need you to confirm that you are a person and not a robot. Does Forex Work On Weekends? As you know currently working at home is getting more and more popular around the world. The matter is that many people have already disappointed in many jobs and they feel insecure under the circumstances of this tough economic world recession. And there’s no wonder that these days making money at home is considered to be a real chance to gain financial independence. Besides this sincere desire to gain a higher social status people are also attracted by a great convenience of working at home. It goes without saying that working at home is a very comfortable option and it’s clear that everybody likes to work in the comfortable environment without nasty bosses and stupid colleagues. And to your great luck Forex trading is exactly that place where you can combine making big money and a great comfort of your home workplace. In fact currently it’s possible to find a good job online. It’s clear that people can derive a great variety of benefits from online home work.

For example these days many new mothers are really interested in staying home with kids while making money in the comfort of their sweet homes. And besides these new moms there are many other guys who are likely to try making money online. For example I can mention burned out exhausted professionals, disabled people and many others. Now it has already become clear that one can gain an absolute financial freedom without leaving one’s room. Now it’s possible to earn more than you need when trading currencies. Moreover you’ll have more free time than ever before. It’s a great thing that Forex trading provides you with enough flexibility and you can use this flexibility for your sake, creating any suitable schedules you like. So in this case you can simply forget about your previous full time job. It goes without saying that there’s no need to get back to that terrible nightmare. But the problem is that many guys want to know for sure whether Forex works on weekends or not. So it’s high time to answer this question. So I can tell you that this Forex market is open for 24 hours every day and even 7 days a week. As you can see I’ve just satisfied your curiosity. So if you’re really interested in deriving profits from currency trading then you need to take advantage of a special trading robot and this miracle will do all the trades for you. Having purchased this software you need to set up your account. Perhaps you’ll be surprised but now everything is ready for your money making and you can execute your first money making deal with a mouse click if you wish. As you can see it won’t take you much time to get started.

One of the ways to enhance your Forex trading performance is to use forex trading signals. But, be advised that now the market full of forex trading signals – do you really think that all of them work nicely and bring revenue? Of course, no. That is why we highly recommend you to visit this blog and learn how to choose forex trading signals that really work. Just Because Trading is Closed, It Doesn’t Mean You Have to Be. by James Stanley , Currency Strategist. Price action and Macro. Your Forecast Is Headed to Your Inbox. But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk. Your demo is preloaded with ?10,000 virtual funds , which you can use to trade over 10,000 live global markets.

We'll email you login details shortly. You are subscribed to James Stanley. You can manage you subscriptions by following the link in the footer of each email you will receive. An error occurred submitting your form. Please try again later. One of the greatest aspects of the FX Market is that it is a true 24 hour a day market. As business is closing at 5:00 PM Eastern Time in New York during the business week, Sydney is preparing to open for the day; and then Tokyo; and then London; followed by the US. As a speculator in the FX Market, I have access to all of these market centers through my trading platform. Traders wishing to speculate at all hours of the night can certainly do so. This allows traders to arrange their schedules and working hours around the commitments in their lives; whether that be taking care of children or working at a ‘day job.’ For traders like me that think about prices and charts all day, this can become a comfort blanket. Can’t get to sleep?

That’s ok; the trading platform has numerous currency pairs with prices moving around-the-clock. Sleep can wait. You have plans with a friend, and they cancel? Who cares? Charts can furnish a much more productive use of time, even if it’s just practicing on the demo. The benefit of this relationship can also be a challenge. After getting acclimated to constant opportunity; of continuous access to the largest market in the world, those periods in which I cannot trade become especially torturous. And on most retail FX platforms, that time is the weekend. But just because trading is closed – it doesn’t mean you have to be. This is where practice can come into play. The weekends are opportunity; an opportunity to prepare for, and strategize around the week ahead. Below is a list of potential activities for the Weekend Warrior; the trader that doesn’t want to take weekends off. This is one of the more common ways to spend trading time over weekends when most FX brokers are closed for trading. Many education services are open while trading may be closed, and this allows traders to access materials for weekend study. I encourage you to revisit these materials.

Trading education can work much like education in general, in which the more experience and knowledge that we have gained can drastically enhance the manner in which we perceive the material. I recently re-read Moby Dick by Herman Melville, and was able to understand the book on an entirely different level than when I had read it in 7 th grade. When I read the book in 7 th grade, it was a story about a man and a whale. After re-reading as an adult, I can understand the layers of symbolism intended by Herman Melville. The book is now entirely different after I was able to incorporate these elements and appreciate the work for the masterpiece that it really is. This is my personal favorite activity to fill time on the weekends. The process of Manual Back-Testing involves ‘simulating,’ a market environment of past, historical prices. This can function as an excellent way of testing a strategy before actually employing it in live conditions. The process of Manual Back-Testing involves literally scrolling to an earlier date and time on the chart (to a period in which you are unfamiliar with price action), ‘locking the view,’ and scrolling forward one candle at a time to ‘simulate,’ price action. The Trading Station 2 platform is built with this capability in place, by default.

Now, an important note is in order: Just because a strategy performed in a particular manner in the past, it doesn’t mean that it will perform in that way in the future. The goal of Manually Back-Testing is to simulate the variability that happens when we trade live, the fact that nobody knows what the next tick is. If you would like more information on Manual Back-Testing, the article I had authored ‘Manual Back-Testing; Practicing the Art of Trading,’ should help with some additional information. Strategizing for the Week Ahead. One of the benefits of trading being closed is the fact that it allows us, as traders, to take a step back to evaluate the week that has just passed. This can be a phenomenal time to account for the week’s trading activities and grade performance. Many traders keeping and following a ‘Trading Plan,’ may use this time to review, edit, and modify their plans based on recent observations. If you don’t yet have a Trading Plan, the weekend can be a great time to build one. The article linked below can certainly help in that process: For traders that are already comfortable with their plan, they can look to the week ahead in an effort to best focus their approaches given the expected economic docket. The DailyFX Economic Calendar allows for traders to organize events based on release date, importance, and currency pair. Below is an example of a filtered Economic Calendar. In this particular case, I am only looking at European, Japanese, and American economic releases deemed of ‘high importance.’ The filter button, located to the top right of the calendar, includes the areas with which I can specify what data I want to see. By analyzing the scheduled slate of announcements, I can begin building in expectations for which strategies might be operative given the expected news. The economic calendar is another service that is available around-the-clock, 365 days a year whether trading is open or not. You are more than welcome to navigate there from the link below to begin strategizing for the week ahead. --- Written by James B. Stanley. To contact James Stanley, please email [email protected]

Com. You can follow James on Twitter @JStanleyFX. To join James Stanley’s distribution list, please click here. DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. TheGeekKnows | Forex Made Easy. Forex Gaps. What? Why? How? Good day to all. Welcome to another koala forex education series. Learning forex made easy! Today let us discuss about forex gaps. What is a forex gap? A forex gap most commonly refers to a difference of the price of a currency pair on the start of the new trading week compared to price at the previous week’s closing. For example, Friday close: EURUSD 1.3600. Monday open: EURUSD 1.3700.

There you go, a gap of 100pips! As i mentioned earlier, a forex gap most commonly refers to a weekend gap. However there are other instances although less common where forex gaps happen too. For example during an adverse development of a financial economic issue. These gaps are usually smaller in sizes. Therefore forex gaps can possibly happen at anytime of the day as long as there is a disconnect of the price of the currency pair. Why do forex gaps happen? In the context of weekend gaps with the different participants in mind, while most of our retail brokers are closed for the weekend, the reality is that the world still revolves and financial economic events still take place or develop. For example, a Group of 7 financial meeting to discuss the current state of financial issues ( which is probably rather consequential ) may take place on a Saturday. Any unexpected result of this meeting may cause expectations to change. In reality, the currency pairs have moved during the weekend but your retail broker which is closed for the weekend will not update it’s chart. When trading start on Monday, your retail broker updates it’s chart, gets the latest market prices and voila a forex gap is seen! How can we handle forex gaps?

In my opinion, the honest truth is no one can predict with 100% accuracy what happens next in forex. There is no crystal ball. The best we can do is to mitigate the risk of forex gaps. Forex gaps can result in margin calls, especially if one is over sized on one’s position. Therefore you should always practice proper money management at all times. I had three margin calls before and one of which resulted from a gap. The gap was so big that it wiped my entire account and went into negative. ( There was no way for the broker to close my positions over the weekend ) If you are a short term trader ( days at most ) consider carefully before leaving trades over the weekend. Definitely keep a lookout for economic events scheduled for the weekend. Make sure you practice proper money management. Many investors take profits on Fridays. This is not without a valid reason. They probably do not want to face the risk of holding the positions over the weekend. Personally i wouldn’t want to as well If you are a long term trader and is trading the right way, you probably have planned your trades well and have wide enough stop loss allowance to sustain most but the worst of gaps.

Practice proper money management and this may save you from catastrophic events. A last note before i end this article. You may have heard people speculating on whether will the forex gap close. When a forex gap closes, it simply means that the price goes back to the level it was before the gap. One possible reason for a closure will be that the gap may have happened because of a knee jerk reaction to an event. Once the commotion surrounding the event disappears, the market may realize that ” Hey, that event wasn’t so great after all ” and normal economic forces take over and bring the price to where it was before the event. Do note however that there is no 100% rule that forex gaps will close. I will like to remind you again that nothing in forex is 100% confirmed. I hope this article shed some light on forex gaps. Dear readers, we have been serving you since 2008 and we need your help. Ads revenue are next to nothing and we will never charge our community. Feed The Forex Koala, Be our Patron. Connect with us on YouTube and Facebook. Do join our free mailing list for exclusive updates!



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