Monday, The Day With Questions

Why do I describe Monday as the day with questions? Because we are unable to determine whether the market will be going uptrend or downtrend with technical analysis. The chart we will be looking at for this day is broken, as the door to the forex market has only just been re-opened. 

From the Euro 1H chart on the left, look at the 2 areas on the chart circled in red, we can see a 'gap' formed. This gap was formed when the market re-opened on Sunday evening (EST). Most probably the cause of the gap is due to news reported on the weekends, and having an effect on the currency rate when the market was closed. 

We will be able to have a better look on the gap with the 15M chart. The news that were reported while the market was closed led to an uncertainty on the trend that would be formed when the market re-opens. Therefore, traders would usually avoid keeping their trades open over the weekend, knowing the risk and uncertainty they will be facing. 

*Look at the red trendline on Friday's market. 

If anyone has entered short he would have earned a neat 200 pips or even more. But this sudden great fall was not supported by any news given in ForexFactory.

Friday, The Untouchable Day

Do a search on any forex forum regarding Friday, you could easily find comments on not to trade on this day by many traders, and claims from some veteran traders that they either make less trade or none at all. 

I myself, have had suffered on Friday due to many trades lost. Even through constant reminder to myself not to trade on this day, it is uncontrollable when you are looking at the candle stick chart and see a potential setup for entry. 

The market on Friday tends to be unstable and unpredictable. As the day is the last opening day for the week before the market closes, access and control to traders' open trades would be denied on the weekends. 

Also, there are news events that will cause volatile movements on this day. An example would be the Non-Fall Payroll news event occurs on every first friday of the month. 

If you have the intention to trade on this day, do approach and monitor the market closely. 

*Refer to next post for an example of a market chart on Friday. 

Forex Market Hours

The Forex Market operates 24 hours, but not throughout the week. 

It opens from Sunday evening - Friday afternoon EST 

There are 4 different sessions during the market opening, and these are; 

Tokyo

GMT 0.00 - GMT 9.00

London

GMT 7.00 - GMT 16.00

New York

GMT 12.00 - GMT 21.00

Sydney

GMT 21.00 - GMT 6.00

These timings are the market opening and closing during non-Daylight Saving period, between March - November. The exact dates will depend according to the country you reside in.