What to Pay Attention to on December 26? Analysis of Fundamental Events for Beginners

[Ben Graham]

Review of Macroeconomic Reports:

There are no macroeconomic reports scheduled for Friday. The holidays continue. In the first two trading days of the week, the market showed strong volatility on pre-holiday days; however, we should not expect every day for the remainder of the year to be equally volatile.

Review of Fundamental Events:

No fundamental events are scheduled for Friday. Governments and central banks are going on holiday for Christmas and New Year, so news will not start coming in until next year. The first interesting events are planned for January 5.

General Conclusions:

During the last trading day of the holiday week, both currency pairs may trade sluggishly. Short-term trends for both currency pairs remain upward, and the market is in full holiday mode. The "thin" market factor may lead to trend movement today, but this can't be predicted. We would expect a flat market today.

Key Rules of the Trading System:

1. The strength of a signal is determined by the time it takes to form the signal (bounce or breakout). The less time it takes, the stronger the signal.
2. If two or more trades were opened near a certain level based on false signals, all subsequent signals from that level should be ignored.
3. In a flat, any pair can form a multitude of false signals or none at all. At the first signs of a flat, it is better to stop trading.
4. Trades are opened during the time between the start of the European session and mid-American session, after which all trades should be closed manually.
5. On the hourly timeframe, using signals from the MACD indicator, it is preferable to trade only when good volatility exists, and a trend is confirmed by a trend line or channel.
6. If two levels are too close to each other (5 to 20 pips), they should be viewed as an area of support or resistance.
7. After moving 15-20 pips in the right direction, a Stop Loss should be set to breakeven.

Chart Explanations:

• Support and Resistance Levels: Levels that serve as targets for opening buys or sells. Take Profit levels can be placed near them.
• Red Lines: Channels or trend lines that reflect the current trend and indicate the preferred direction to trade.
• MACD Indicator (14, 22, 3): A histogram and signal line, a supplementary indicator that can also be used as a source of signals.

Important Note: Significant speeches and reports (always included in the news calendar) can greatly influence the movement of the currency pair. Therefore, during their release, it is advisable to trade cautiously or exit the market to avoid sharp reversals against the preceding movement.

Remember: For beginners trading in the Forex market, it is crucial to understand that not every trade can be profitable. Developing a clear strategy and implementing sound money management are keys to successful long-term trading.

The material has been provided by InstaForex Company - www.instaforex.com