Forex traders need to keep track of the market’s opening and closing times for each trading day, as well as the weekly open. This is important because market opening and closing times can vary depending on the region and time zone, and it can have an impact on trading strategies and decisions. In this article, we will explain how forex traders can mark day open and weekly open in forex.
1. Understanding Forex Market Hours
Forex market hours vary depending on the region and time zone. Generally, the forex market is open 24 hours a day, five days a week. However, the market is not open on weekends, which means that Friday’s closing price is not the same as Monday’s opening price. The forex market is also closed on major holidays like Christmas and New Year’s Day.
It is important to note that forex trading hours are different for each currency pair. For example, the EUR/USD pair is most active during the European and US trading sessions, while the AUD/USD pair is most active during the Asian and Australian trading sessions.
2. Marking Day Open in Forex
To mark day open in forex, traders need to identify the opening time of the trading session that they are interested in. This can be done by checking the trading hours of the forex broker that they are using or by using a forex market hours indicator.
Once the opening time is identified, traders can mark the day open by drawing a horizontal line on the chart at the opening price. This line will act as a reference point for the rest of the trading day, helping traders to identify key levels of support and resistance.
It is also important to note that the day open price can act as a significant level of support or resistance, especially if it coincides with other technical indicators like moving averages or trend lines.
3. Marking Weekly Open in Forex
To mark the weekly open in forex, traders need to identify the opening price of the trading week. This can be done by checking the closing price of the previous trading week and the opening price of the current trading week.
Once the opening price is identified, traders can mark the weekly open by drawing a horizontal line on the chart at the opening price. This line will act as a reference point for the rest of the trading week, helping traders to identify key levels of support and resistance.
It is also important to note that the weekly open price can act as a significant level of support or resistance, especially if it coincides with other technical indicators like pivot points or Fibonacci retracements.
4. Using Day Open and Weekly Open in Trading
Marking day open and weekly open in forex can be useful for traders in several ways. Firstly, it can help traders to identify key levels of support and resistance, which can be used to enter and exit trades.
For example, if the day open price coincides with a key level of support, traders may look to enter a long position with a stop loss below the day open price. Conversely, if the day open price coincides with a key level of resistance, traders may look to enter a short position with a stop loss above the day open price.
Similarly, if the weekly open price coincides with a key level of support or resistance, traders may look to enter or exit trades based on this level.
Conclusion
Marking day open and weekly open in forex is an important aspect of trading that can help traders to identify key levels of support and resistance. This can be done by identifying the opening price of the trading session or trading week and drawing a horizontal line on the chart at this level. Traders can then use these levels to enter and exit trades based on their trading strategies and risk management principles.
