Forex markets get started late afternoon on Sundays (as Australia and the Asian sessions get rolling) so I always like to get a head start on things – considering it “back to work time” Sunday around 4:00 p.m
The trade volume on Sunday leading into Monday is always very light, and many charts will often see “gaps” in price action. These “gaps” can provide for some interesting trade opportunities, as for the most part price action will almost always move to “fill the gap” before the larger volume trades kick in during London’s session as well the U.S come Monday morning.
In general I “usually” don’t initiate trades on Sunday night but will most certainly look to follow price action into the early morning on Monday – and even put on a couple “probes” if I see something that works.
This morning in particular I see that several USD pairs have made reasonable moves “counter trend” and with the continued framework of “further USD weakness” still very much in place, I do see some excellent entry points. BUT…..
Knowing the market as I do, it’s almost ALWAYS A BETTER BET TO WAIT A FULL HOUR AFTER THE OPEN ON MONDAY as over excited “newbie traders” rush through the doors bright and early – only to be met by our dear friends on Wall Street and their usual “host of surprises”.
Trust me – you will not miss a single things as far as “timing your perfect entry” if you can just hang on an extra hour or two to let the “Monday morning fleecing” run it’s course – then take another look and see where the dust has settled.
Patience is a huge part of Forex trading, as time and time again I find myself doing a lot more “waiting” (with my money safe in hand) than I do actually “trading” with a pack of hungry wolves on a Monday morning open.
Personally I see the tiny “pop higher” in USD here this morning as a great re-entry “short” via several pairs.
Looking long AUD/USD as well NZD/USD as well (gulp) EUR/USD as well short USD/CHF and USD/CAD.
Good morning Kong & All,
Now that you informed me that the picture is pencils, and in the clear light of sobriety, it is amazing work.
An old market aphorism, “If a trade is a good idea now, it will still be a good idea five minutes from now”.
Being trigger happy (entering too soon) is another sin I still battle. Thanks for the reminder Kong.
Good week everyone.
On a personal note – I “was” pretty much “the most impatient person on the planet” some years ago. With almost everything – waiters/restaurants , girlfriends , fishing , hunting , driving , diving – you name it, I was usually “hot under the collar” long before anyone else.
Then along came “forex”, and I was forced to tackle it.
My family and friends even say I’ve changed.
It may have taken a couple of years but learning to be patient when trading forex has been a huge step forward. For the account balance too.
Hi Forexkong, would you look to short usd/jpy as well if you are shorting usd/chf and usd/cad?
In this case ( considering I see further USD weakness coming ) yes at these levels around 98 – yes.
Ultimatley I want to buy this pair, but as it stands – this is a low risk short entry around 98 area.