The Bill Williams Fractals indicator is often used to identify stronger trend potential in the market and market reversal points.
Trading during Christmas holidays
As the Christmas holidays are approaching, the main question comes to every trader's mind: is it possible to trade during such long holidays? FBS answers: yes, it is possible! You just need to keep in mind several tips and you can make money while others rest.
Tip #1 – Do not underestimate the “year-end” effect
If you trade for a long period of time, you have probably noticed how the currency tends to fall during one period of time and rise during the other one. This is called the seasonal forex tendency. Some analysts mention the so-called "year-end" effect as the key seasonal pattern you need to pay attention to. A good example of the year-end effect is the change in the price of the US dollar in December and January. The USD tends to fall at the end of the year, then to start to recover in January-February. This happens as December is usually the key deadline for taxation and reporting. Also, the holders of losing positions try to close them before the end of December and then at the beginning of January they open new ones. We recommend you to take these tendencies into account while planning your trades in the last weeks of the years and be careful with your money.
Tip #2 – Reevaluate stop-losses and take-profits
The volatility is usually very low during Christmas and New Year holidays that is why you need to readjust your stop loss and take profit set-ups. For example, if you normally place take profit 100 pips away from your order, it might be better to choose a target of 70 to 80 pips.
Tip #3 – Take a chance to trade the Canadian dollar
According to some of the analysts, USD/CAD tends to be more volatile compared to other currency pairs during the Christmas holidays. As a result, it can bring you the chances to trade.
Tip #4 – Scalp, if it’s possible
As Christmas and New Year holidays are long, the trading on Forex will be very limited. It can provide scalpers a steady environment to trade in.
Tip #5 – Check the calendar
During the last week of the year there are not so many events in the economic calendar. Moreover, the Forex market is closed on December 25 and January 1. To reduce the risks, it may be better to close your positions on these dates. You can find the more concrete working time of the Forex market and FBS in the "company news" section on the site.
You may hear that the end of the year is known as a not very attractive time for trading. However, if you are more careful and attentive to the specific characteristics of the market during this period of time, you will definitely succeed.