TGIFF #006: Why You Want to Be a Weekend Forex Warrior

I’ll start by saying that Finding the right time to analyze your charts is essential.

It may not seem like a big deal, but it can mean the difference between finding profitable setups or ending the week with a loss of capital.

When I started using technical analysis over 10 years ago, I had no routine. I would draw levels here and there whenever I had the time and hope for the best.

Today, I have a scheduled block of time for performing my chart analysis.

Doing so enables me to mark up my charts as necessary, free from distraction. More importantly, it’s a way for me to draw levels ahead of time to allow the market to come to me.

It also provides a full week of activity which helps me determine the best approach for the upcoming week.

If you feel like you’re constantly chasing the market, this post is for you.

I’m going to let you in on some trade secrets, including when I perform my analysis and how it helps me stay patient once the trading week begins.

Ready to do this? Let’s go.

Secret #1: The Weekend Forex Warrior

Like most people, my weekends are “my time”. I try to maximize my weekends, which mainly means chilling out, going out, relaxing, etc.

Still, weekends are my best bet for carving out some chart time.

While it helps that the retail market is closed over the weekend, the real advantage for me is the respite from a busy schedule.

I wake up most days at 5:30 am, which gives me a couple of hours of study time before the busyness of the day begins.

For me Saturday is a day off. I usually conduct my analysis each Sunday afternoon in preparation for the upcoming trading week.

Performing my analysis before the market opens gives me the advantage of taking a ‘wait and see’ approach.

I simply set my levels and then wait for the market to establish a favorable opportunity to buy or sell.

One mistake I see many traders make is that they have no set time to analyze the market. This leaves them chasing setups left and right during the week.

It’s far better to let the market come to you. It helps you maintain an objective stance until something worthwhile comes along.

Secret #2: Volume and Weekly Signals

One reason I trade the daily time frame above the 1-hour and even 4-hour charts is due to the increased volume.

Quite simply, there’s more trading volume in a 24 hour period than any 1-hour or 4-hour block; as long as you’re comparing the same currency pair, of course.

Why does volume matter? After all, isn’t it just a mixed bag of buy and sell orders?

Not when you understand that the Forex market is merely a voting system.

Think about it. Your decision to either buy or sell the EURUSD comes down to whether you believe the pair is overvalued or undervalued. In other words, whether you think it will move higher or lower.

It doesn’t matter how you arrive at that conclusion. You may utilize a simple price action strategy like myself, or use fundamentals to evaluate the Euro and U.S. dollar collectively.

Either way, the moment you buy or sell the EURUSD you’re casting your vote. 

The more votes there are in a specified period, the more reliable any resulting signal is likely to be.

Just like a daily candle contains more volume than a 4-hour period, a weekly candle has more volume than a daily one.

So, by performing my analysis over the weekend, I have the advantage of seeing those ‘votes’ for the entire week.

For many, the next logical question becomes – why not just trade the weekly time frame then?

Why not, indeed.

It’s a perfectly logical thought process when you consider the volume advantage it offers. 

In fact, some of my members use the weekly charts to find 90% of their setups.

The downside is that your average trade will take weeks if not months to play out. 

But if that isn’t a problem for you, trading from the weekly time frame may be one viable (and profitable) approach to consider.

Performing your analysis at the end of each week will give you a distinct advantage over those who don’t.

Secret #3: Never Stop Challenging Your Analysis

As traders, our work is never done. Once you’ve performed your weekend analysis, it’s important to continue to monitor your levels throughout the week.

The great thing about price action is that we get to see whether the market respects our levels.

If it does, great. We can watch for buy or sell signals from the area depending on whether we’re bullish or bearish that particular market.

If not, it might be time to either remove the level or adjust it as necessary.

It’s an ongoing process of drawing and tweaking levels to determine the best placement possible.

However, it’s important not to go overboard. While it can be advantageous to adjust levels as the price action unfolds, it can be all too easy to ‘form fit’ your levels.

This happens when you adjust levels to benefit a trade idea on your watch list, rather than staying objective with your analysis.

So, if you tweak a support or resistance level, just be sure it’s justified by the price action on the chart. 

Otherwise, you’re better off leaving it alone.

Secret #4: What Fits Your Schedule?

Not everyone has weekends off. Heck, even I don’t fully get them off, given that I continue working on the website over the weekend.

Nonetheless, it’s my best chance at carving out some chart time.

If you’re someone who works weekends or has other obligations during that time, you will need to find an alternative.

One reason I choose to do my chart analysis on weekends is because the retail market is closed. 

That means I don’t have to concern myself with where the Euro is or what the U.S. dollar is doing.

However, the greatest advantage for me is the downtime. 

The ability to sit down at my charts for 30 to 60 minutes with no distractions is priceless.

You should strive for the same. If that means performing your analysis on Monday, so be it.

By doing your analysis at a set time each week, you’ll be less likely to chase the market when a new week begins. Having your levels in place when the market opens means all you have to do is sit back and wait for an opportunity to fall into your lap.

That’s a far less stressful way of trading Forex; and less stress means more profit.

How are you enjoying my tactical trading tips so far? With the hope that these insights are helping you improve your trade practices, thus the results, I’ll see you next Friday!

Till then, keep trading and have a wonderful weekend!

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