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The Peculiiarities of Weekday Trading at Forex Market

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The peculiarities of weekday trading at Forex market
The movement of the currency pairs at Forex market has a direction, so called trend, which is well followed at the end, but for the more efficient work traders should know its direction at the beginning of the trade week.

There are several factors, forming the trend at Forex market:

1. The movement of the currency pairs on Friday at the American Exchange.

2. The opening of Gap (price gap at the end of the previous and beginning of the next day) at midnight on Monday (Asian trading session). The result is that the broken resistance levels of the pairs very often become the support levels, and the pairs, having made a start from these levels, move in the given direction during the week.

Between the American trading session on Monday and Asian trading session on Friday the channel of the resistance levels' highs (on the fractals and zigzags) determines the start point for the currency pairs, which break the resistance upwards or downwards, and, as a rule, move in the given direction of the trend.

The first and basic feature of the currency pairs' behavior at Forex market is their movement at the American exchange on Friday. This is an original testing of the trend's strength and direction through the weekend news.

If the issue of the negative news does not influence the bounces of the currency pairs on Friday, this means that brokers and banks were not ready for such surges and the movement should start on Monday.

If the currency made the sharp leap on the trend, there are two scenarios:

1. The new wave of the trend, for example 400 points, which the currency pairs passed for the last week, will become a first wave, and the third wave in the same direction, which is equal at least 640 points, is by 60% longer.
2. Being at the beginning of the wave of the middle-trend from the 4-hours chart to the daily and weekly charts, the rollbacks are from 23% to 62%, the movement is trend-like, the new week - the new bounce on the trend.

If at the American trading session on Friday the currency at the market does not start its movement, this means that brokers can not determine the trend or moving direction for the next week, and this direction will be known only on Monday.

From everything mentioned above we can make a conclusion: depending on the behavior of the Elliot waves, Friday determines the behavior of the currency for the beginning of the next week.

1. If the potential force of the trend is very strong and there was a jump on the trend on Friday, then on Monday or Tuesday it can be expected the correction and reversal, or new wave on the trend.
2. If on Friday the currency made a bounce against the trend, then Friday movement will turn into correction or into the first wave of the opposite trend.
3. If the currency does not start its movement on Friday, then it can be expected the formation of the movement on Monday or Tuesday.

One more important feature of the currency market Forex is the analysis of Forex economic calendar for the next week. For this purpose it is necessary to mark the events, which can forecast the direction of the trend and all updates to it.

Besides, there is one more peculiarity, it is necessary to pay attention to the Gap, which appears at midnight on Monday, whether the currency pairs of the allies are opened upwards or downwards and what the direction of the currency pair will be after this at the Asian trading session, as a rule the currency will move in this direction next week.

In order to earn on the market, it is necessary to understand that intraday trend does not exist by itself.

Each trader should come to the following major conclusion: the currency makes the most part of its movement until the news issuing and only the minor movement is observed when the news was officially confirmed.
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