Treating the first session after a holiday like news risk
Posted: Thu Oct 22, 2026 11:46 am
After a holiday, markets can behave oddly. Liquidity returns unevenly, positions are adjusted, and the first session can be volatile or erratic.
Reasons:
- Traders returning from holiday adjust positions.
- News from the holiday period gets priced in.
- Liquidity may be thin early in the session.
Treat it like a news event:
- Reduced size.
- Wider stops or no trading in the first 30–60 minutes.
- Watch first, trade later.
- Fewer trades.
Also consider your own state: returning from a break, you might be rusty. Your timing and discipline need a warm-up.
Examples: first session after Christmas/New Year, after Easter, after a US holiday (for USD pairs).
How do you approach the first session after a holiday?
Reasons:
- Traders returning from holiday adjust positions.
- News from the holiday period gets priced in.
- Liquidity may be thin early in the session.
Treat it like a news event:
- Reduced size.
- Wider stops or no trading in the first 30–60 minutes.
- Watch first, trade later.
- Fewer trades.
Also consider your own state: returning from a break, you might be rusty. Your timing and discipline need a warm-up.
Examples: first session after Christmas/New Year, after Easter, after a US holiday (for USD pairs).
How do you approach the first session after a holiday?