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Hello ladies and gentlemen Forex traders.
Friday. A relaxed day ahead of a crazy weekend after that will come work on Monday. How does this affect the market ? Acting as the big players in this day ? Who leaves a position for the weekend, taking the risks ?
Today, we will look at things to be aware of, trading Forex on Friday why this daily candle is important, what clues can be drawn from the direction of the price in this day and consider some important nuances, which you hardly thought of.
what time Forex closed on Friday ?
the First thing worth mentioning is the closing time of the Forex market on Friday. In the market watch window in MT4 there is a clock, and most brokers are closed when the time on the clock is coming to 23:59. Moscow time is either midnight or the morning, depending on what the server time of the broker: summer or winter. There are also brokers that can be closed for an hour or two earlier, for example at about 23:00 Moscow time. More accurate information you can find on the website of your broker. For example, Roboforex schedule is located under “Customers” -> ”Information” -> ”market hours”.
All painted in detail, but note that you can use custom time zone and you may need to Google how this schedule corresponds with your local time.
However, in General, most brokers closes at midnight Moscow time.
Friday's NonFarm payrolls news and
Also, the newcomers should remember that on Friday at 15:30-16:30 (depending on summer or winter now is the time) in America, the US dollar often break important news, such as non-pharmaceutical that can severely shake the market.
So on Friday, don't forget to check the economic calendar that is including on our website here.
note if the calendar any important news is marked with three red lines — as, for example, today at 15:30.
So — today to trade and monitor the market has no meaning. Can safely exit it and go to rest.
the Direction of movement in the second half of the day is the key to momentum Monday
the Next thing I would like to draw attention to is the movement in the second half of Friday, i.e. after 16:00-17:00 GMT until market close. If in this period of a steadily rising price on Monday should be expected to continue this movement. Accordingly, if the price is dropping steadily — at least in the first half of Monday could be expected to continue this momentum. Moreover, we are interested in explicit and directed movement:
it is very clearly seen and works on a pair USDRUB, which is shown in the screenshot above. If such stable growth will continue until the closing of the market on Monday to continue the momentum.
Why is this happening, I think, is clear: the big players bought, not fearing that over the weekend something will happen. That is, they believe in the absence of news, confidently confidently purchased or sold — and that means that on Monday we can expect to continue the momentum.
the Formation of weekly candle
In General, the market does not like to change the shape of the weekly candle on Friday. Therefore, when looking at the chart on the W1, and it practically formed the weekly candle, it is possible to assume, what movement will be until the end of the day.
for Example, this Friday, at noon on the EURUSD chart at the weekly candles are pretty long tail, which suggests that the bulls already made. Plus quite targeted traffic prices down. Even if we consider non-Pharma — often they only make the foot and then the price recovered in a couple of hours. So, most likely, the rest of the day will continue the movement down or the price will remain roughly at the same level. But to expect some significant growth is clearly not worth it.
Or the weekly candle to the 12:00-14:00 on Friday — bullish full-bodied or full-bodied (large body, small shadows) bear to wait for a significant price movement in the opposite direction until the end of the day not worth it.
Accordingly, in this case, if you are trading intra day, look for a short trade, if the weekly candle is clearly bullish, not much point.
of Course, if the weekly candle is vague, for example something like the doji, the price can go in either direction, and something reliable in this candle is difficult to predict.
But full-bodied weekly candle allows with sufficient accuracy to predict the movement of the market in the second half of the day on Friday: the bear is down, bull is up. Well, almost will not change — that happens more often than we would like...
Why is Friday so important?
Huge amount of trading volume in the Forex market is day trading. High frequency and intraday traders account for 80% of transactions on the market. And they all come out of the market until Monday.
So who are they — those people who open positions on a Friday and leave them for the weekend? After all, over the weekend anything can happen. It is the large traders of various major companies, which own a large amount of information than we or the media. They agree to risk transfer deals over the weekend, paying swaps. That is, it is very important traders and to the direction of their positions is, at least, look. So what happens on Friday, often has a significant impact on the future price movement and can give a boost both on Monday and all next week.
in addition, according to statistics, Friday is often the minimum or the maximum point of the weekly candle. For this reason, we can expect the continuation of directional movement of the prices if it is present in the weekly candle.
But if we take a separate D1 candle Friday, in case if it has some of the signals your trading system or overall Price Action — it is worth a look.
When to open a position when the signal D1 is on Friday or Monday ?
Many people ask the question: when is the best time to open position in the presence of the signal D1 at the close of market on Friday evening, either at market opening on Monday?
the Answer is simple: open position at market opening on Monday. If there is a gap, traded it, and if there is no Gap — we are trading our setup. Because if you open position on Friday night, a huge gap can simply make your feet on Monday and you will receive a loss (plus your order can slide). So if you see a signal on Friday night, it is better to open the positions on Monday.
in addition to the above, we should not forget that on Fridays many traders close the deal and record the profit, not wanting to carry positions over the weekend. This may be due to a possible gap, and the desire to get out of position and easily go for the weekend. So at the end of the day if there was a clear bullish trend — the price is a little rolled back (bulls profit-taking), if there was a clearly bearish trend — the price moves a little higher (bears closed position).
regards, Pavel Vlasov
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