hi am only new to this trading but something I have noticed is that when the markets open they sometimes open with a gap from where they closed from previous week. It seems that these gaps close within a few hours so I am thinking if your fast enough you could place orders in the direction that the currency has to travel to close the gap. its almost like taking candy from a baby. I would be interested to hear how many traders are trading this setup.
I noticed this too but have not scalped that move. I emptied my positions that took just a little extra profit from this weekends gaps.
Gap trading is just a bonus strategy that you can use whenever there is a gap. But you should wait for a signal according to your strategy and shouldn’t just enter any position just by seeing a gap.
Trading gaps is a big advantage and can be very profitable but can be risky due to high volatility and low liquidity and so proper care should be taken .
Just remember that not every gap closes so I would make sure that you have more buy/sell signals that just the gap. Not as easy as taking candy from a baby in my opinion.
[QUOTE=“Rambo35;687410”]Just remember that not every gap closes so I would make sure that you have more buy/sell signals that just the gap. Not as easy as taking candy from a baby in my opinion.[/QUOTE]
Yeh it was just an observation thats all. All of the gaps I noticed today closed pretty quickly it’s definitely a strategy that’s worth looking into. I am as green as grass with trading so it’s something I can look at and see if it’s viable on a demo account until I am confident in my plans and execution.
Monday’s opening should be interesting pretty good chance we will see som gaps at opening judging by the way the markets closed on Friday.
Some nice profits made on the gaps this morning with EUR/USD AUD/USD NZD/USD and the EUR/JPY
YOU HAVE TO LOVE MONDAY’S
Some nice profit taken from the AUDJPY and AUDUSD today this stratagy seams to be more hit than miss
Opened with a nice gap the first hour showed the market wanted to close the gap so i jumped in and now i can let it run. Any thoughts from other trades as i am very new to this.
I always say that a trader should follow his strategy even if there is a gap and should not blindly jump in any trade after seeing a gap.