Sunday candle - noobie question

If there is no trading on a Sunday how can there be a Sunday candle.

My mt4 shows a friday candle and no doubt at 11pm UK time will begin a Monday candle.

How come I read about Sunday candles and people saying they dont like to trade Sundays.

Im confused - do they mean that they dont like to predict monday by the friday candle ?

Here you go, read your heart out for the Sunday candle and breakout. :slight_smile:

http://forums.babypips.com/free-forex-trading-systems/23601-sunday-breakout-strategy.html

It works too, say thanks to Phil.

trading doesnt happen on a sunday, but since forex is a worldwide thing, it may be monday when its sunday on your side, hence the sunday candle.

thanks guys - now i understand how there can be a sunday candle although cannot use the sunday breakout strategy exactly using my broker which does not seem to show the sunday candle which i guess would be from the areas ahead of uk time - not quite sure which they are - anyways thanks again guys

Hi,

In almost all cases trading starts on or after 10PM UK time on Sunday. That corresponds to 8:00AM in Australia. There may not be much activity then in a given pair.

By 11:00PM UK time it is 7:00AM in Tokyo. By midnight there is a fair bit of activity in Asia-Pacific. Indeed around 17% of currency trade originates from this region. You will see candle formation and gaps from 10:00PM UK time. However, the volume will be pretty low on certain currencies as it is a thin market then. You may even see few spin tops or Dojies earlier on followed by normal candle formation in early hours of Monday.

Hope this helps

Thats an interesting link to look at. Thank you. Phil thanks for the system.

Muthu.

Another thing to remember is that when most people, myself included, say “Sunday candle” or “Sunday data” we mean Sunday according to GMT. More than likely your broker is showing you the data from Sunday, it’s just “hidden” inside another candle due to the time zone your broker is using and isn’t labeled as “Sunday.”

For example, Alpari uses GMT+2 and the first 4H candle of their trading day is from 00:00 - 04:00 on Monday. This might seem like you’re missing the data from Sunday, but the first 2 hours of that candle correspond to the Sunday candle on IBFX, which is the broker we base the “official” Sunday Breakout trades off of in the Sunday Breakout thread. :slight_smile:

If you want to trade the Breakout you have three options…

1: Drop down to a 1H chart on your broker and do the time zone calculations to find the Sunday data.

2: Get a demo account at IBFX or some other GMT broker. Get the numbers off their charts then trade with your broker.

3: Read the Sunday Breakout Thread a few minutes after midnight GMT. Someone always posts the trades there a few minutes after midnight. :slight_smile: