What is trading like during Christmas Period

What is Trading like during Christmas period.

As a new Forex trader, I have not experienced trading during the month of December.
How does the market move or do I need to stay off the Market like I did during US election

boring. usually there is few to no movements


Long-term trading off the D1 charts is almost unaffected by Christmas - but there are some effects to be aware of.

Spreads can be a lot wider than usual due to low volume and some changed business hours.
There can be unexpectedly large upward / downward moves towards the end of the year.
The first week in January sometimes sees dramatic reversals from new highs or lows: the new highs and lows established in the first days of January can sometimes persist for many months.


That means the Best thing to do is to Avoid the market maybe after next week

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I dunno really. Big moves mean big risk but they also mean big opportunity. For example, the stodgy EUR/USD made a 15-year low on 03/01/17 that price has never got back to. Nobody who bought that day lost money, it went up over 2000 pips from there.


Perhaps the biggest issue will be wide spreads that get you in or out on what looks like normal volatility on the chart or on the ATR indicator.

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low liquidity which will mean larger spreads

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Thanks All,

I asked the question because as it stands now I don’t even understand what the market is up to.
I trade with 4hour chart but that strategy is Luke us no longer working…

It now looks as if short term trend is now the best considering how the market have been moving up and down

Low volume and volatility

Yeah look at longer term trades. Anything short term will be boring as low volume and volitility means you won’t get many set ups. I tend to leave it personally.

I personally do not trade in this period as first its holiday season and I give myself a time and second spreads get wider due to low liquidity.

I recommend spending time with your family instead.

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I take it that you do not live in the UK - Christmas has just been banned !

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The market is mostly volatile during this event, i would suggest you to not indulge in big trades.

I understand, UK people need to stay at home and avoid gatherings due to new strain of covid-19. Perhaps, you can enjoy trading sitting at home. :slight_smile:

markets are not much volatile. low volume, you don’t get good spreads to trade. rather than trading, its better to enjoy the holidays with family. or since you are beginner, practice.

Wide spreads, as a trader this will be my 4th Christmas period. I’ll suggest you to keep your trading volume down till the new year eve.

I don’t prefer it since the market volatility is low during this time so I would recommend you to wait for the holiday season to get over

I don’t prefer trading during the holiday season as volume in the market is really low

Which is an effective reason for moving over to long-term trading, at least at such periods. The forex daily charts clearly show that the Christmas/New Year holiday periods as no different to any other time periods of the same length in any given year.