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Movement of currency pairs on Forex market has a direction, so called trend, which can be seen well in the end, but for more efficient work traders should know its direction at the beginning of trading week.
There are several factors forming a trend on Forex market:
1. Movement of currency pairs on Friday on the American stock exchange.
2. Opening of Gap (price gap by the end of the previous day and at beginning of the next one) at midnight on Monday (Asian trading session). The result is that the hit resistance levels of pairs very often become the support levels, and the pairs, having made a start from these levels, move in the given direction during the week.
Between the American trading session on Monday and the Asian one on Friday the channel of peak resistance levels (on fractals and zigzags) determines the start point for currency pairs, which break the resistance upwards or downwards and, as a rule, move in the given direction of a trend.
The first and the basic feature of currency pairs' behavior on Forex market is their movement on the American stock exchange on Friday. This is an original testing of trend force and direction through the weekend news.
If a negative news release does not influence the bounces of currency pairs on Friday, this means that brokers and banks were not ready for such surges and the movement should start on Monday.
If a currency has made a sharp trend leap, there are two possible scenarios:
1. A new wave of trend, for example 400 points, which the currency pairs had passed for the last week, will become a first wave, and the third wave in the same direction, which is equal at least 640 points, is by 60% longer.
2. Being at the start of mid-term trend from 4-hour to daily and weekly charts, the rollbacks reach from 23% to 62%. Movement follows the trend, a new week - a new trend jump.
If at the Friday American session the currency did not start its movement on the market, this means that brokers cannot determine the trend or moving direction for the next week, and this direction will be known only on Monday.
From everything mentioned above we can make a conclusion: depending on behavior of the Elliot Waves, Friday session determines the currency behavior for the next week beginning.
1. If potential force of a trend is very strong and there was a trend jump on Friday, then on Monday or Tuesday a correction or reversal can be expected, or a new trend wave.
2. If on Friday the currency went against the trend, then Friday movement will turn into correction or into the first wave of an opposite trend.
3. If the currency did not start its movement on Friday, then a movement formation can be expected on Monday or Tuesday.
One more important feature of the currency market Forex is the analysis of Forex economic calendar for next week. For this purpose it is necessary to mark the events, which can forecast a trend direction and all updates to it.
Besides, there is one more peculiarity, it is necessary to pay attention to the Gap, which appears at midnight on Monday, whether currency pairs of the allies are opened upwards or downwards and which direction the currency pair is to move in after this at the Asian trading session, as a rule, the currency moves in this direction next week.
In order to earn on market, it is necessary to understand that intraday trend does not exist by itself.
Every trader should come to the main conclusion: currency makes the most part of its movement until the news release and only a minor movement is observed when the news was officially confirmed.
There are several factors forming a trend on Forex market:
1. Movement of currency pairs on Friday on the American stock exchange.
2. Opening of Gap (price gap by the end of the previous day and at beginning of the next one) at midnight on Monday (Asian trading session). The result is that the hit resistance levels of pairs very often become the support levels, and the pairs, having made a start from these levels, move in the given direction during the week.
Between the American trading session on Monday and the Asian one on Friday the channel of peak resistance levels (on fractals and zigzags) determines the start point for currency pairs, which break the resistance upwards or downwards and, as a rule, move in the given direction of a trend.
The first and the basic feature of currency pairs' behavior on Forex market is their movement on the American stock exchange on Friday. This is an original testing of trend force and direction through the weekend news.
If a negative news release does not influence the bounces of currency pairs on Friday, this means that brokers and banks were not ready for such surges and the movement should start on Monday.
If a currency has made a sharp trend leap, there are two possible scenarios:
1. A new wave of trend, for example 400 points, which the currency pairs had passed for the last week, will become a first wave, and the third wave in the same direction, which is equal at least 640 points, is by 60% longer.
2. Being at the start of mid-term trend from 4-hour to daily and weekly charts, the rollbacks reach from 23% to 62%. Movement follows the trend, a new week - a new trend jump.
If at the Friday American session the currency did not start its movement on the market, this means that brokers cannot determine the trend or moving direction for the next week, and this direction will be known only on Monday.
From everything mentioned above we can make a conclusion: depending on behavior of the Elliot Waves, Friday session determines the currency behavior for the next week beginning.
1. If potential force of a trend is very strong and there was a trend jump on Friday, then on Monday or Tuesday a correction or reversal can be expected, or a new trend wave.
2. If on Friday the currency went against the trend, then Friday movement will turn into correction or into the first wave of an opposite trend.
3. If the currency did not start its movement on Friday, then a movement formation can be expected on Monday or Tuesday.
One more important feature of the currency market Forex is the analysis of Forex economic calendar for next week. For this purpose it is necessary to mark the events, which can forecast a trend direction and all updates to it.
Besides, there is one more peculiarity, it is necessary to pay attention to the Gap, which appears at midnight on Monday, whether currency pairs of the allies are opened upwards or downwards and which direction the currency pair is to move in after this at the Asian trading session, as a rule, the currency moves in this direction next week.
In order to earn on market, it is necessary to understand that intraday trend does not exist by itself.
Every trader should come to the main conclusion: currency makes the most part of its movement until the news release and only a minor movement is observed when the news was officially confirmed.
