Does Monday is so hard as everybody say?

There is a strong belief that Monday is a hard day. Many will confirm it, because it is very difficult to return to the working rhythm after the weekend. The Forex market is not an exception as well and by analogy with Friday, Monday also has its own features and patterns.

Features and patterns of trading on Monday

The main feature of Monday is the low activity at the start of the week, that makes it low-volatile in most cases, especially  the Asia-Pacific session. On the other hand, Monday is the day of restoring trading volumes in the market, that are fully restored and give an idea of ​​the further movement in the market closer to the European and American sessions.

If we reject the risks of the weekend, unexpected statements and events that go out of the market’s non-working time, and the movement against Friday, that appears as a correction against the strong Friday move, Monday can be considered as a continuation of the movement of the existing trend.

Fig. 1. Example of trading on Monday, the blue zone – trading against Friday, the yellow zone – the continuation of the movement.

 

The second significant feature of Monday is the change of moods with the change of trading sessions. Tracking the dynamics of trading on Monday, you can see that on this day the mood in the market can significantly change with opening new trading sessions. So, for example, the growth of the dollar in the Asian-Pacific session may be replaced by a decline in European or American sessions, or vice versa.

Fig. 2. Examples of mood changes in the market during Monday, caused by the alternation of trading sessions.

 

In addition, Monday is often a very calm day with moderate volatility, which is suitable for  traders – beginners, allowing them to track changes in moods and existing dynamics smoothly. Also, the economic calendar is often quite empty and any, even low-latitude, news is perceived by the market on this day very actively. As a result, this day of the week is suitable for strategies based on trading on the news.

As the nature does not have bad weather, so the market does not have bad days, if you follow the market closely  and know some features.

Anton Hanzenko