TYPICAL TRADING WEEKDAY ON THE FOREX MARKET
The movement of currency pairs in the Forex Market has a direction called a trend that continues to be followed until the end, but in order to provide efficient results, traders should know the direction at the beginning of the trading week.
There are several factors that make up the trend on the Forex market:
- Movement of currency pairs on Friday on the American stock exchange.
- Gap opening (price difference at market close and market opening) at midnight on Monday (Asian trading session) The result is that the resistance level penetrated by the pair is often a support level, and the pair that has started from this level, moves in the direction there for a week.
Between the American trading session on Monday and the Asian trading session on Friday, the height of the resistance level (in fractals and zigzags) determines the start point for the currency pair, which breaks the resistance up or down, and usually, moves in the direction of the trend .
The first and fundamental feature of currency pair actions on the Forex market is their movement on the American stock exchange on Friday. This is the original experiment on the strength and direction of trends through weekend news.
If the negative news does not affect the rise of the currency pair on Friday, this means that brokers and banks are not ready to act and the movement will start on Monday.
If the currency makes a sharp rise, there are two scenarios:
- A new trend wave, for example 400 points, the currency pair passed last week will be the first and third wave in the same direction, which is equivalent to at least 640 points, and 60% longer.
- By being at the beginning of the medium trend wave from the 4 hours chart to the daily and weekly charts, the retreat from 23% to 62%, the movement is likely to be a trend, a new week- a new move on the trend.
If in the American trading session on Friday, the pair in the market does not start the movement, this means that brokers cannot determine the trend or direction of movement for the following week, and this direction will be known only on Monday.
Of all that has been explained above, we can conclude: by relying on Eliiot’s wave action, Friday determines the currency action for the beginning of the following week.
- If the potential strength of the trend is very strong and there is an increase in the trend on Friday, then on Monday or Tuesday, there can be a correction or reversal or a new wave on the trend.
- If on Friday the currency makes an opposite trend, then Friday’s movement will be a correction or become the first wave in the opposite trend.
- If the currency does not start the movement on Friday, there will be a movement formation on Monday or Tuesday.
Another more important feature in the Forex currency market is the analysis of the Forex economic calendar for the following week. This aims to mark events that can predict the direction of the trend and all updates for trends.
In addition, there are other characteristics, namely having to pay attention to the Gap that appears at midnight on Monday, whether the currency pair opens up or down and whether the direction of the currency pair will occur after opening in the Asian session, usually the currency will move with the trend next week.
In order to make a profit in the market, you must understand that the intraday trend does not appear on its own.
Every trader must know the main conclusions as follows: The currency does most of the movement until the news is issued and only minor movements are observed when the news is officially confirmed.