Gaps do require significant volume though, and with major players out of the game during the weekend, it is the closing gaps we are interested in.

Closing gaps can be triggered by a small number of traders investing in the same direction. The market reacts, spiking, and many traders are left puzzled.

So, they trade against the trend, hoping to capitalize on the error. Now, look at the closing price at 5 pm EST on Friday. We can use this to establish whether the gap can be traded when the market opens on Sunday. Next think about how big the gap has to be for you to take a position.

A 1 percent gap would mean the price opens up at approximately Tweak the percentage size in line with your risk appetite. When the Tokyo market opens at 7 pm EST on Sunday, enter a trade if the open is at least So, if the market opening gaps up to Alternatively, if the market opens at You want to keep the trade open until the gap fills or your chart suggests the gap is going to keep growing.

Gaps are often filled and it can happen for a number of reasons:. When a gap is filled within a single trading day, it is referred to as fading. Fading is not applicable to weekend trading as it takes place over a longer period, but it is commonly used by those trading overnight gaps so it is worth understanding what it means.

you do not correctly anticipate the directional price movement. The longer the markets are closed, the greater the associated risks. Trading an overnight gap has a lower level of risk vs trading the weekend gap for example. This is because price fluctuations tend to be less extreme.

That is not to say that the risks should be underestimated. Traders should bear in mind that slippage can occur when trading the weekend gap, opening themselves up to the risk of losing more than their initial investment.

There are a few things it is worth keeping in mind when trading the weekend gap in the forex market:. More investors are forex trading over the weekend. With additional hours to trade, many see the profit potential, with the gap trading strategy proving particularly popular. But before you start trading, make sure you have a reliable online broker and a strategy that reflects the weekend market environment.

Yes — forex trading is possible over the weekend. The most commonly used strategy is the weekend gap technique, which looks to profit from the change in price between when the market closes on a Friday and when it reopens on a Sunday. Forex positions held over the weekend may incur rollover charges.

Online brokers normally publish a calendar of rollover times and charges. Technically, forex weekend trading hours run around the clock, with no specific opening and closing times.

With that said, large institutional investors and banks typically do not operate over the weekend, so there is significantly less volume from Friday 5 pm EST through to Sunday at 7 pm EST. The weekend gaps strategy is the most popular technique used over the weekend. Traders seek to profit from movements in price between the close of the market on a Friday and the price when the market reopens on a Sunday. To trade forex over the weekend, you need an online broker that operates during weekend hours.

You also need a reliable trading platform, an effective strategy and the time to conduct your analysis and take positions. To trade weekend forex gaps you will first need to find a broker that facilitates it. After that, the market soars, leaving everyone else perplexed. What do they then do? They speculate that there must be an error and trade against the trend in an effort to gain from the mistake. Gap upward: Traders will sell their holdings.

The margin will then close when the markets decline. Lower gap: Traders will purchase assets. The disparity will then close as the market increases. There is a good possibility that any gaps you observe in low-volume markets, such as on the weekends, will be filled. You have all of the knowledge required to make a profit because you are aware that the gap will close. Know this:. The market will rise until the price hits the height of the first candlestick that fills the gap, which is the price goal.

It should ascend to the low of your previous candlestick if there are gaps to the downside. It should drop to the peak of your first candlestick with upward gaps. The expiry — You are aware that the market ought to hit the desired price inside the following time frame.

You might also trade a one-touch option, which might provide you a bigger reward. Make sure the option you invest in has an expiration date that is less than one period and a price objective that is within the gap.

This approach is simple and may be used with both commodities and currencies. You only need your weekend trading charts to get started. You can even use professional consultants to engage in weekend gap trading.

You should include this tactic in your weekend toolbox. It is the best basis for your weekend plan because of this. The moving average plus twice the standard deviation is shown in the upper line. As resistance, this is effective. Lower line: The standard deviation divided by the moving average. This serves as a bolster. Middle line: A moving average of 20 periods.

Depending on whether the market is trading above or below it, this may be support or resistance. On weekends, these bands frequently produce the finest results. Because major traders and news events might trigger new movements during the week, the trading range varies considerably. The upper and lower Bollinger Bands also vary in response to changes in the standard deviation. Predictions may become meaningless as a result. However, the market is steadier during weekends because of the lower volume.

To put your new approach into action, just adhere to these three simple steps. Create your chart. Select an instrument, and then create a price chart with Bollinger Bands using that instrument. Be patient — At this point, you can relax and watch as the market moves toward your bands. Till the market is within one of the three Bollinger Band lines, you must be patient. Now is the moment to input your forecast for the direction the market will go.

Because it is so simple to use, it is excellent for both seasoned traders and newcomers. Visit us on: www. Skip to content Search for:. Why Are Markets Closed on Saturday and Sunday? Opportunities For Weekend Trading Examine Free Online Courses on Forex Trading When most FX firms are closed for trading on the weekends, this is one of the more popular ways to fill trading time.

Utilize Your Trading Platform to Its Fullest Weekends are the perfect time to become familiar with a trading platform and see how it may help you with your trade. Plan for the Coming Week One advantage of trading being suspended is that it gives participants time to reflect on the previous trading week.

Why Trade on Weekend?

With the forex market being the most liquid market in the world with a huge amount of trading volume, there are always positions to take, edges to exploit and traders that are looking to enter the markets. There are only so many trading hours in the week, which leads part time traders to look towards taking trades in the forex market on the weekends. However, is it actually possible to trade forex on weekends?

The forex market is shut on weekends, so it cannot be traded. Prices of currency pairs can still move, hence why there may be a gap in price on the market open on Sunday.

Depending on where you are in the world, the forex markets are open from Sunday night, to Friday night each week and you will not be able to place any trades during the weekend. The forex markets are closed on the weekends, so you cannot open any trades on the weekend. The price of currency can still fluctuate during the weekend and you will sometimes nice a gap in the price on market open, from the price of market close on the Friday night.

You want to further your skills, learn the ropes and gain experience in the most liquid market in the world. What can you do? This is the beauty of trading simulators. A trading simulator will allow you to forward test live markets, using backtest data that comes to you in real time meaning you can actually test strategies and trading systems like you would in real markets.

I have compiled a list of the best forex trading simulators here , so definitely check that out! To save you the time, Forex Tester 5 is your best bet! When it comes to trading, you need volume. Volume is the lifeblood of the financial markets. Without trading volume, you will be looking at consolidation, potentially volatile moves and for day traders it would be more or less impossible to actually have an edge in those conditions.

During the trading week, volumes for forex stay fairly high. During London session the volumes peak, tailing off into the US trading hours, with very little volume in the asian trading hours. Any trader will tell you that the best times to execute trades, for intra day traders, would be during the market opens and towards the end of sessions, when volume is lower, you would struggle to find an edge in the market.

You can find out more about trading sessions here on Babypips. If the markets were to be accessible to retail traders during the weekend you would find that large institutions and fund traders would most likely not be running at full capacity. This leads to really tough trading conditions, higher spreads and less of an edge for us traders! In summary, the forex market is closed on the weekend so it cannot be traded. Brokers will not allow retail forex traders to open any positions, until the market reopens on the Sunday night.

Currency prices can still move during the weekend, so markets may open at a different price to the close price from the previous week. If you are holding trades open over the weekend, do be cautious about potential slippage. Kyle Townsend is the founder of Forex Broker Report, an experienced forex trader and an advocate for funding options for retail forex traders. As the forex prop firm industry has grown, so has the amount of prop firms offering funding for traders. With forex brokers reducing leverage and the industry getting more regulated, trading your Skip to content With the forex market being the most liquid market in the world with a huge amount of trading volume, there are always positions to take, edges to exploit and traders that are looking to enter the markets.

Article Contents Forex Trading On Weekends Why Would Trading On Weekends Not Work? Are Any Trading Markets Open For Weekend Trading? In Conclusion — Can I Trade Forex On Weekends? Continue Reading.

On weekends you can prepare your strategy. XM vs IC Markets. Forex Brokers USA. Markets Forex Metals Indices Commodities Futures Shares Trading Account Types Spread Comparison Autotrade Widgets Trading Central Platforms IronFX Web Trader App MT4 WebTrader VPS Hosting PMAM TradeCopier IronFX School Academy VIP Room Q4 Market Trends Report Seminars Webinars Podcasts Economic Calendar Financial News Forex Trading Strategy What is Forex? MT5 Forex Brokers. Please ensure that you fully understand the risks involved. Best Brokers for Forex Weekend Trading.

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