I shall remain thankful for the knowledge you are sharing. We appreciate your choice of Forex forum mt5. And on most retail FX platforms, that time is the weekend. Your articles are really helpful especially in the CS because I also like CS analysis Hope can go along with the trend this coming month. Normal forex trading hours are
Aug 24, · just a curious questions, why does Forex Trading close on Weekends? It's a OTC trade whereby there's no "middleman" or central exchange. Just being curious what could be the reasonssmiley.
Weekend Gaps and Your Pending, Stop Loss and Target Orders
What Are the Weekend Gaps? This weekend, the GBP cross currency pairs opened with an extraordinary big gaps. This unbelievable gap is related to GBP excessive weakness during the past several days. Whatever the reason is, fortunately the gaps were all in our favourite direction with the positions we already had. Click on the image:. There is an important question regarding the weekend gaps. Let me explain a little more what I mean by this question. If we hold our positions and pending orders during the weekend, and then the market opens with a gap either down or up , what will happen to our pending orders?
Will they be triggered exactly where they are set, or they will be triggered where the market opens on Sunday afternoon? Here I have explained that the currency market is closed only to retail traders during the weekend, but it is always open 24 hours per day and 7 days per week. That is why we see a gap on our charts, when the market opens on Sunday afternoon EST.
If the markets was also open to us during the weekend, then instead of the gaps, we would have candlesticks on our charts. But this is not what we see on the platform when it becomes updated on Sunday afternoon. But it is what it is. This is what everybody may think, if he reads the above bad news.
If we hold our positions during the weekend, and the market opens with a big gap against our position, then our loss will be much bigger than our stop loss. I showed you two examples at the beginning of this article, and you saw that the huge gaps we had this weekend, not only did not make any problems for us, but also made a lot more profit, because our positions were at the right direction. This is because of nothing, but taking the positions based on the strong setups.
I wrote such a long story to emphasize on the importance of following of the strong setups and ignoring the weak and questionable ones. So pending orders will not be any problems.
What if the market opens with huge gap against us, even if our position is taken based on a very strong setup? Everything is possible in this market and business. It is possible that the market opens with a huge gap against you, even when your position is taken based on the strongest trade setup ever. You can lose a lot. However, there are a few things you have to consider:. Thanks Chris… a very good analysis on gaps and candlestick pattern. Your articles are really helpful especially in the CS because I also like CS analysis Hope can go along with the trend this coming month.
First, let me compliment you on the way you are running this site. I find it to be the most educational site I have seen on internet.
It would be a shame if you decide to quit. Regarding weekend gaps in I must admit that I strongly disagree with you. I think that it is a very profitable and high probability set up if it is outside bollinger band that can be used to close open positions as well as to trade countertrend.
It is true that you do not have levels to put stops but you can use AT R in such cases. Btw if you closed your AUDJPY trade at the open instead at the close as you probably did you would have a much better exit. This is really great that you are a gap trader also and you are very happy with it. I would be so thankful and glad if you could write a small article about your system and share it with the LuckScout followers. I will be your first reader, because I have really interested in what you said.
Hi Chris I can write an article but you must let me know if Word as a program is good enough and since I have never written anything longer then short letter I am not sure if I will know how to put any pictures.
So, in order to write an article I shall need your help. Thank you for your kindness. Yes, Microsoft Word is fine. Regarding the pictures, you can save the screenshot through your trading platform and attach it to the email that you will send me. You can find it by clicking on the flag icon in the bottom task bar. An image comes into a popup. Now go to the word document and left click on it and then right click and paste — the image appears on the document.
You would be surprised at how many traders believe the market "closes" over the weekend. Hello, You should try with Penny Stocks Trading you can find more info here: I've been subscribing to this PennyStock web site for about a year now and have loved the objective advice they give. He really does look for quality stocks and I've made some pretty nice profits on a lot of his suggestions.
Being still fairly new to investing I have been dabbling a lot in penny stocks to try and grow my account. I may not have a big account, but it's a lot bigger than it was a year ago. On just one of Nathan's picks this year I managed to make my investment back ten-fold! Penny stocks are notoriously risky but if you follow the right method the risk is almost 0. I suggest to invest only little money first and then reinvest the profits.
This is the site I'm using: But trading penny stocks is also a good way to lose money. So penny-stock trading thrives. With a relatively small investment you can make a nice return if the trade works out.
The secret word of trading success is "organized". You can't be successful without a strategy, a plan and some kind of technological support. I use a software called "autobinary signals" that is helping me a lot. There are plenty of them on the market. It's a OTC trade whereby there's no "middleman" or central exchange.
Just being curious what could be the reasons.. Actually, there is a market for Forex all weekend, we do not see that as we are using retail brokers If you want a trade, there will be a market maker somewhere who will take the trade, however, due to the illiquidity on weekends you will pay a hefty premium spread. Low illiquidity higher spreads - Higher illiquidity lower spreads. Pretty much like trying to get to your bank on Sunday for a money order and with nobody there, having to go to local food mart for it The topic of this thread is an obvious but valid question for anyone in forex.
Market News Headlines
Most people think that the currency market (forex) is closed during the weekend, but this is not true. It is only closed to retails traders, but it is always open for the central banks and the related organizations. Currency transactions are always done electronically and can not be stopped even for one second. Why Is Forex Closed on Weekends? Even though in theory the currency market never closes, it is extremely hard to see someone trading on a Sunday. A beginner may even feel the trading activity has come to a halt because of Forex brokers who take a break on weekends. Weekend gap trading is a popular strategy with foreign exchange, or Forex, traders. While technically open around the clock, Forex trading closes on Friday afternoon and doesn’t reopen until.