Here’s one point I’m struggling with as a new trader: when using an end-of-day trading strategy and an ATR-based risk-management system, how do you act on Fridays and Sundays?
I’m in the UK, so candle close is typically midnight, but of course that means a 22-hour candle on Friday followed by a 2-hour candle on Sunday. If the Friday candle close indicates an entry, that indication could easily be falsified by weekend developments, so I’m thinking I should delay my entry until Sunday at around 11.30, and use the ATR from the Friday candle in my risk-management calculation. Of course, any significant change in price will negate the trade, since it will either invalidate the entry signals if price moves against or put me at a disadvantage if it moves in favour, so I could enter only if price remains relatively static on Sunday opening.
Is there a better way?