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The economic calendar is basically empty on Monday. There will be several important events during the week, but we don't expect much from them. For instance, the European Central Bank meeting on Thursday may be unremarkable, as interest rates are expected to remain unchanged. We can only expect interesting information from ECB President Christine Lagarde and Federal Reserve Chair Jerome Powell, who are scheduled to speak this week. The US will release important data on the ISM for the services sector, NonFarm Payrolls, unemployment, ADP, and JOLTS. But all these events will take place throughout the week, not on Monday.
There will be no fundamental events on Monday either. Since the ECB meeting will take place this week and the Fed meeting the following week, both central banks are in a "quiet period." This means that there will be no speeches by representatives of the monetary committees who could share important information with the market.
Monday sees no important events. It will most likely be another boring Monday. However, take note that the flat phase may suddenly end, and the market does not necessarily need a fundamental or macroeconomic background to significantly raise volatility. Moreover, central bank meetings, Powell's and Lagarde's speeches, as well as important US data are just ahead. Therefore, the market may try to anticipate these events in advance.
1) Signal strength is determined by the time taken for its formation (either a bounce or level breach). A shorter formation time indicates a stronger signal.
2) If two or more trades around a certain level are initiated based on false signals, subsequent signals from that level should be disregarded.
3) In a flat market, any currency pair can produce multiple false signals or none at all. In any case, the flat trend is not the best condition for trading.
4) Trading activities are confined between the onset of the European session and mid-way through the U.S. session, after which all open trades should be manually closed.
5) On the 30-minute timeframe, trades based on MACD signals are only advisable amidst substantial volatility and an established trend, confirmed either by a trendline or trend channel.
6) If two levels lie closely together (ranging from 5 to 15 pips apart), they should be considered as a support or resistance zone.
Support and Resistance price levels can serve as targets when buying or selling. You can place Take Profit levels near them.
Red lines represent channels or trend lines, depicting the current market trend and indicating the preferable trading direction.
The MACD(14,22,3) indicator, encompassing both the histogram and signal line, acts as an auxiliary tool and can also be used as a signal source.
Significant speeches and reports (always noted in the news calendar) can profoundly influence the price dynamics. Hence, trading during their release calls for heightened caution. It may be reasonable to exit the market to prevent abrupt price reversals against the prevailing trend.
Beginners should always remember that not every trade will yield profit. Establishing a clear strategy coupled with sound money management is the cornerstone of sustained trading success.
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