Not all trading days are the same. An experienced Forex trader knows that Fridays have nuances. If your goal is to correctly read the charts at the end of the week then keep reading.
The Market Closure
All brokers choose their own time to close the market on Fridays. Check it in advance. Otherwise, you might skip the moment of market closure and your positions will remain open for the weekend, whether you want it or not.
Most traders prefer to close their positions on Fridays. Unless you are a large market participant with insider information, you can never know what will happen to the price during the weekend. If the market forms a huge gap on Monday you might suffer significant losses. Moreover, you will have to pay swaps for holding your positions during the weekend.
Always Check the News
If you trade majors, make sure to check the economic calendar ahead of time. The United States often releases high impact news on Fridays, such as Non-Farm Payrolls. Such events have a significant effect on the markets, causing high volatility and sudden price jumps. In order to reduce your trading risks, make sure to close all your trades half an hour before and at least an hour after the actual news.
Trading on Fridays
Daily traders can use a W1 candle on Fridays. For example, if you see an engulfing bearish candle then the price should continue to drop. For a bullish engulfing, the price will grow. It happens as the market prefers to keep its main weekly direction. Of course, a neutral candle cant give you any hint.
Confident price movement in the second half of a trading day on Friday tends to continue on Monday. You can use it during the market opening. If the price kept dropping on Friday, it will most likely continue declining on Monday as well.
If you see a perspective trading setup on a daily chart at the end of Friday, fight the urge to use it. Wait for Monday and in case the signal remains after the market opening, feel free to open your trade once you confirm the signal.
These are all the tips I have for you today. Good luck in tradingClick here for further information