Hey everyone I’ve got something I’m wondering and I’m hoping I can get some insight from the veterans here. I’ve read that when there is movement when the market is closed that at the open it is normal for the gap to close before any further movement in either direction. It makes sense. Now I’ve been seeing this but I’ve never seen a large move in the forex pairs during a closed market.
Now my question. USD/CAD unlike the rest of the pairs I was monitoring friday kept moving up till the close. The rest seemed to die out a few hours before the close. USD/CAD kept going up and up till it hit a solid resistance and then stayed there till the close. Now it is back down 50 pips. Thats quite a big move down for USD/CAD. Most of the other pairs have moved less than 5 pips. So was the last few hours of friday more of the big boys just taking profit and not a true reflection of its value/direction or do you think that USD/CAD or anyother pair for that matter will still close the gap when the market opens even if it is a huge move during closed market hours?
My apologies for not answering the question, but instead making a new one that maybe should belong to the Newbie Island. I have been searching an answer to this a while after seeing your post, without success.
I think I once saw somewhere a hint about a forecast for the Sunday opening, but unfortunately did not store the link. Now you say that there is even real movement when the market is closed. Where would it be possible to see these closed market movements?
The broker data I have access to is dead silent when the market is closed, and neither was I able to find any site providing closed market data, though at least one showed timestamps for Sunday. Moreover, I did not notice such a huge gap in today’s open. Do the brokers tend to hide it somehow?
There is no actual close Monday through Thursday, so you won’t see gaps. You will sometimes seen them after the weekend.
Whahuh? Did you not read what I said? It’s pretty obvious that I already know that based on what I’ve written.
Based on what I’ve observed this past sunday. The gap is still closed first on open even under the different circumstances.
Apparently not as obvious as you think.
I have definitely seen gap openings, but then I’ve been a forex market observer for like 15 years, so I’ve seen my share of weekends come and go. The large gaps are rare because the events which cause them are also rare. They are generally related to major political developments and the occassional bank blowing up.