Traders who want to profit from the weekends should study the forex weekend gaps. They have relatively small gap sizes, but large gaps are a possibility on weekends. The reason why these gaps occur is because big announcements are generally published on the economic calendar ahead of time. To trade the forex weekend gaps, you need to use a currency pair that experiences high volatility. Then, look for trading gaps on Sunday evening and Monday morning.
In order to trade a weekend gap, you must find a price that is at least 20 pips lower than the Friday closing price. You can use a one-touch option or a high-low option. Make sure that your stop-loss is set at the gap s lower closing price. Once the price moves above the gap, you can use the same technique for buying or selling. If you don t have enough information, you can also use a one-touch option.
Another way to trade the forex weekend gaps is to look for a big gap that has yet to be filled. During the weekend, most traders are out of the market. Traders can take advantage of this by trading on a weekend gap. While this market trend isn t popular with all investors, it is an excellent time to trade. The forex weekend gaps can be a lucrative opportunity if you have an eye for price fluctuations.
The forex market is decentralized, and weekend trading volume is lower than usual. However, this low volume can provide great opportunities for traders who are willing to use this advantage. The gap itself is a pattern, with a big gap indicating a large difference between the Friday closing price and the Sunday opening price. Another way to trade the forex weekend gaps is by following a news release, which may cause the market to panic.
If you are looking for a big gap, the best time to enter is on the weekend after a major holiday. In this case, you should watch for a common gap that occurs at midnight on Sunday. These patterns are usually accompanied by an upward trend. As long as the price is higher than the previous Friday close, you should have a good chance of securing a profit. However, if the trend continues to move higher, then you should consider a trade based on the trend.
Using an expert advisor to help you trade the forex weekend gaps will significantly increase your profits. Expert advisors follow pre-determined criteria to make more accurate trades than you can manually. They also back-test potential strategies so that you can identify potential problems. This will help you pick out which strategies are best for you. Once you find the best ones, you can apply them and reap the benefits. But remember that it is always better to take your profits than lose them.
To understand how to trade the forex weekend gaps, you should understand what gap risk is. It is a risk associated with a gap, and the longer the market is closed, the more the risk of being caught out is. That s why the overnight gap is usually lower risk than the weekend gap. The difference in price volatility is more than double in the weekend gap. In other words, the forex market is open 24 hours a day, so gap trading involves risk. You might even lose your entire capital.
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