[Stock, FX] Be careful of opening windows in an emergency


February 2022 is a special month in the history of foreign exchange and stock markets. Russia’s invasion of Ukraine has caused various economic sanctions on Russia. Before the start of the war, various information flowed from countries such as the United States and Russia, and the market price was greatly disturbed each time. In such a market, sudden surges and collapses occur, and many people lose a lot of money, so be careful, but even more scary is opening windows. It can be irreparable with great loss.


What is window opening?

There is a word to open the window on Monday. Forex trading hours are limited to weekdays and are closed on Saturdays and Sundays. There is a big break from Saturday morning to Monday morning, and if a big event happens during that time, there will be a big space between the candlesticks. This is called opening a window

Upper window

The upper window is a state in which the candlesticks are separated upward at intervals.

Lower window

The lower window represents the opposite of the upper window.

An example of a window opening that actually happened

The chart below is an hourly chart of AUD / JPY on Monday, February 28, 2022. As you can see from the blue frame, there is a tremendous space. The day before that day, a big event happened and there was a gap like this.

Russia excluded from SWIFT

Russia was sanctioned for the invasion of Ukraine on Saturdays and Sundays before the foreign exchange market opened. That is exclusion from SWIFT. A big impact occurred in the world, and such a big space was created.

Putin suggests a nuclear attack

Russian President Vladimir Putin was completely unable to capture Ukraine, went mad, and made public statements about the launch of nuclear missiles. As a result, the world was in turmoil and there was a lot of news. A big impact occurred in the world, and such a big space was created.

Cannot be settled on Saturdays and Sundays

Foreign exchange is closed on Saturdays and Sundays and cannot be settled during that time. Therefore, it is possible that a sudden large price range will reach Monday and cause a big loss. With this background, it is dangerous to start the week with the position carried over. It’s okay to carry over positions with a clear strategy, but somehow carrying over can be irreparable in some cases.

Trade carefully in case of an emergency

As of February 2022, the world is shaking greatly, and it is safe to enter World War at any time. Because of this situation, we do not know when the market will experience a surge or a crash. Therefore, in such an emergency, you should trade carefully and avoid holding a position for a long time that is meaningless. It is a story that can be a big loss if you take your eyes off a little.