Do I trade on Forex on New Year?

New Year holidays are coming up. Trading at this time is not always predictable, that is why on the sites of brokerage companies and thematic projects devoted to trading there is holiday calendar . As a rule, weekends and public holidays on f are accompanied by lower liquidity and weaker financial flows. Due to this, many traders mark these days in their trading logs.

Probably every one of us has asked at least one of the following questions when trading during the holidays:

- is it worth working on your trading system on holidays?
- whether to work on holidays at all?
- Should you stay out of the market if, for example, the Asian exchanges are closed and your currency pair is Eurodollar?
- What are the holiday trends and how to capitalize on them?

Do I trade on New Year's Eve?

It is very common for traders to trade on holidays - "the main thing is that the DC works.". However, it is worth noting that a trader trading on a system based on indicators, often does not take into account holidays.

Nevertheless, if a trader enters the market, he takes into account the fact that in a calm market you can "take your 20-40 pips in a day easily".

Of course, there are traders who do not pay attention to holidays, and trade according to the situation: "if I see a favorable environment for entering the market, I do it". In this case, the time factor is shifted, but the goal remains the same - to make a profit, and when it will be, whether it will be on a holiday or not - it does not matter to the trader.

There is, though. tradersthat remain out of the market. Often the market is flat on a holiday. But, as history shows, not once there is a picture in some senses of non-standard behavior of the currency exchange rate on a holiday in its country. Also, it should be mentioned that the risk of catching a stop loss in such a situation is considerably high.

Of course, holidays take up little time in the calendar year considering that trading in the market is done daily and around the clock. It has been observed that during the holidays there's some sloppy trading going onSome people's trading systems go haywire, especially if the US exchanges are closed. This is especially noticeable on national holidays - Easter, Christmas and New Year's Eve.

How to trade on New Year's Day?

Undoubtedly, it is possible to trade on holidays, but it is worth considering several factors: volumes are low, the rate moves against logic, and many traders note the appearance of a large number of false signals.
The basic rule of pre-holiday trading is to buy a few days before the holidays, as many people close their trades at this time. The fact is that investors, both large and small, can afford to get out of the market for a few days or weeks, if only because such hard work necessarily requires rest, but of course because before the holidays will necessarily require expenses.

Let's take a look at the major holidays, relative to the main EURUSD pair for 2011.

The data is taken from the Calendar of Forex weekends and significant public holidays. This calendar in no way cancels or replaces the need to view news in the events calendar, especially on holidays.

On the EURUSD chart on the daily timeframe, the black dotted line with a point shows the festive day.
Ideally, it is worth analyzing each individual day, its scale of celebration and its impact on the financial sector. It is very common to see a fall in the currency on the days of a holiday in a country. Moreover, holidays are a certain oscillator in the market. Very often, namely on January 1 (actually from January 3), January 17, February 21, May 1, July 4, October 3, October 31 and November 24 there is a change of trend, a reversal. In some cases there is a global change of trend, in other cases - correction, rollback.

By analyzing the charts for 10 years, you can build your trading system based on holiday trading patterns. Experienced traders know that holidays do affect the financial markets, and they always take this important time into account. There are many more holidays than the table above. Understanding how the exchange rate behaves on these days will open up new trading and earning prospects for you.