This is one of the few things about forex trading that I haven't explored about and know so little about. I've only heard about it early on and never actually do anything about it. My main broker doesn't do Sunday trading. My other broker does. They seem to open the market about 2-3 hours ahead on Sunday afternoon New York instead of the usual 5 pm New York Close & New Zealand Open.
I'm curious as to the purpose and the usefulness of Sunday gap trading. Anyone here trade it? I thought that if you know what happens on Sunday trading, you can manage your risk better than those who do not. I don't know whether I'm right or wrong.
From observation, the gap is already done by the time Sunday trading opens. It's not as if the Sunday trading causes the gap to those who are not Sunday trading. For example, a few months ago (15-18 March 2013), EU gapped down ~175 pips on Monday open. If you managed to trade over that weekend, and in the wrong end of the trade, no stop loss can save you, and even knowing what happened or did anything on the Sunday wouldn't have helped you either. Because the gap happened between Friday and Sunday.
But at times, I noticed that there are instances had someone put a SL/TP on Friday, their orders would be executed properly and saved them from gigantic problem that follows. In a way, this Sunday trading could've saved you. Or we can even make a profit on it. I personally however, tried to my best not to leave position open on Fridays. I just don't know at all where price will open on Monday.
I'm curious as to the purpose and the usefulness of Sunday gap trading. Anyone here trade it? I thought that if you know what happens on Sunday trading, you can manage your risk better than those who do not. I don't know whether I'm right or wrong.
From observation, the gap is already done by the time Sunday trading opens. It's not as if the Sunday trading causes the gap to those who are not Sunday trading. For example, a few months ago (15-18 March 2013), EU gapped down ~175 pips on Monday open. If you managed to trade over that weekend, and in the wrong end of the trade, no stop loss can save you, and even knowing what happened or did anything on the Sunday wouldn't have helped you either. Because the gap happened between Friday and Sunday.
But at times, I noticed that there are instances had someone put a SL/TP on Friday, their orders would be executed properly and saved them from gigantic problem that follows. In a way, this Sunday trading could've saved you. Or we can even make a profit on it. I personally however, tried to my best not to leave position open on Fridays. I just don't know at all where price will open on Monday.
- So is Sunday trading any use? How can we take advantage of it?
- Just what exactly happens on Sunday trading? Who facilitates the trades? Which market is open to execute those orders? Isn't there a massive liquidity issue?
- In the absence of major players (or so it seems), are technicals and fundamentals still valid?
- Is this the dark pool of forex?
- Are there repetitive patterns that only happen on Sunday trading?
- Are the S&R lines worth anything on Sunday trading?
- Should we consider brokers who provide Sunday training as favorable?
