I noticed today when the market reopened at 22:00 there was a spike of +40 PIPS. I then went back to a week this Sunday and noticed the same.
Does this happen every week when the market reopens? Is there ussualy a spike of +20 pips?
I’m not sure if there is always a spike, but why not just open two entry orders. If it spikes up itll auto go long for you, if it spikes down, itll auto go short. it’ll only allow you to open one so aslong as they arent +/-1 pip and have a decent room to start with, maybe 8 pips, then it should keep you going in the right trend, i’d limit it personally at 30 pips profit myself, just until you know what the currency spikes at reguarly after a weekend.
I think ill try it for next Sunday. Can i create a market order outside of trading hours or will i have to set it before close on friday? or does it depend on the broker.
Thanks for the help and sorry for the newbie questions!
I’m not sure, just try creating an order on a pair that is still closed now, i use FXCM so don’t know what other brokers do.
There is not always a gap (not a spike). The market runs 24/7 just most brokers are closed over the weekend. So when they open on sunday night, the opening price reflects where it has moved over the weekend.
You would have to set your pending order before the close on friday.
Just remember gaps can take weeks to fill and sometimes not at all, so its not always in the same day.
Secondly, take into account that the spread is usually “widened” as well
cheers
Also, if you put a pending order and the price opens past your order then moves to cover the gap then you could be in the wrong direction.
Example, pending sell order at 1.50 and the price is at 1.49 at open after a gap then goes up it will trigger your order on its way up and be immediately moving against you.
Frome the sound of it, the gaps are usually filled within the first few days especially if the gap was against the overall trend. So maybe a pending order inside the gap going with the trend to be triggered as the price moves to fill the gap might be a better strategy.
This is how I trade Sunday gaps. As soon as the market opens if I see a gap I trade it closed. The gap must be big enough to make it worthwhile. I set my take profit at a little more than 1/2 way to Fridays close, and the big spread must be figured in don’t overlook that. Any gap less then 30 pips or so on most pairs is kind of small to trade this way, Once you figure in a big spread and a conservative TP.
Edit>> just closed a profitable G/J gap trade:D