Table Of Contents
Usually the currency pairs’ movement has strong direction, called trend, and it can be clearly predicted after the monitoring at the end. To make Forex day trading more efficient, the Forex traders need to predict its direction before Monday, when the trading week starts.
There are many options, that shape the trend in the Forex trading system. The weekly trend’s direction can be determined monitoring two factors:
As a result, the currency pair plot their resistance levels and after the breakdown they often turn into the support levels, and after that they move in a given direction during the week.
The starting point becomes defined in the period between Monday US session and Friday Asian one. The channel of the peaks’ resistance levels on zigzags and fractals defines it. The currency pairs begin to punch the resistance up or down and usually they continue moving in the trend’s direction during all the week.
American Stock Exchange: the Friday currency pairs’ movement becomes the first and the main point of their conduct. Remember, that the last published news determine trend’s direction and strength. In the case the bad news did not influence the currency pairs’ jumps on Friday, Forex brokers and banks have no time to prepare for such jumps and the movement should begin as early as Monday.
There are two possible options, in the case the currency makes a sharp jump in the trend:
A new week means a new leap in the trend. If during the US session on Friday the currency market doesn’t start its movement, the Forex brokers can’t determine the direction of movement or trend for the next week. So, this trend will be determined only on Monday.
As a conclusion, depending on the behavior of Elliott waves, Friday determines the trend’s direction o at the beginning of next week.
Another important global Forex trading’s feature is the analysis of the Forex news calendar for next week and note the events that can determine the mood of trend.
There is one more feature. The gap, which appears at midnight on Monday is very important. If the currency pairs open up or down, and the currency goes next week, where it goes at Asian trading session.
In order to get the profit, we must understand that there is no daily trend itself. The main conclusion, which the Forex trader should make, is: the currency makes its major movement before the news are published, and only a small movement is observed after the news are officially confirmed.