This article looks at the weekend analysis of the foreign exchange rate that you should be completing.
When you trade the foreign exchange rate you might assume that there is nothing to do on the weekend. This is due to the forex market being closed over the weekend. The truth is that you should be completing weekend analysis of the foreign exchange rate. The weekend analysis that you complete is vital to the success of your trading and the profits that you can make. There are a number of reasons why you have to complete weekend analysis that you should know about. You should also consider what you should be doing with the weekend analysis.
Why Weekend Foreign Exchange Rate Analysis is Important
Weekend analysis of the foreign exchange rate is very important for two reasons. The first reason is that weekend analysis allows you to see the big picture of the forex market. As you are not under pressure to open a trade over the weekend you can take the time to view the entire market and how all the different parts are linked.
The second reason why weekend analysis is important is the planning that you can do. The planning that you complete over the weekend will ensure that your week’s trading is done correctly and that you are not under severe pressure during the week. Preparing for the trading week is very important if you want to be successful on the forex market.
Looking at the Forex News
When you complete weekend analysis one of the points that you have to look at is the news. You should see what news is coming out during the next trading week. While many technical traders feel that this is something they do not have to worry about you should have an idea of the news that is coming. If you are a technical trader you have to be aware of the news because of the movement it could cause on the market.
If you are going to be trading on the news movement then you have to take the time over the weekend to view the big picture. This means that you are going to be looking at the news that relates to the upcoming release and determining how this could affect the market. By having all of this information prepared you will be able to calmly trade when the time comes.
Looking at the Technical Drivers
The technical drivers of the market will be viewed using the forex charts. While there is no trading over the weekend the movements of the market can still be viewed on the charts. The movements and patterns that you see over the weekend can help you determine what could happen in the coming week.
If you have a long-term trade open then you have to carefully consider the technical movements. These movements will help you determine whether your open position is going to profit or lose money when the week starts. While you should not close your trade over the weekend analysis you have to consider what it is telling you about the overall movement of the market and the upcoming changes.