Has anyone else spotted that gap on GBP/AUD? Thought that gap would be filled by the end of today but nope.
I feel like this is also why it’s best to just close open trades on Fridays and then reenter them on Mondays. Just my 2 pips.
It is a total misconception that gaps are relevant in the spot FOREX market I’m afraid. With stocks and commodities they occur almost daily not only on individual stocks and commodities but on the cash indices and most ETFs etc. Matter of fact and with stocks: in some circles they’re actually seen to be the highest probability trade of the day. They occur because of futures movements and after hours trading outside of the regular trading hours of the cash sessions such after hours movements being attributed to earnings reports or news events to name but two examples. It is an exercise in futility in spot FOREX. Oh they may eventually get filled for a FOREX pair but this just because the price of a FOREX pair may just happen to trade back to the same price at some point in the future not simply because a gap exists. Big difference there.
Aw man, I always thought the 90% scenario was that it’d get filled!
Sorry. Not on FOREX. But let me not make it out to be something it’s not either i.e. trading gaps in the Equity market is an art form itself too. Not just a simple matter of seeing a gap and assuming it will close so you just jump in. But statistics are nevertheless in your favor (to name but one thing in your favor anyway) e.g. a few other things being equal an opening gap on the S&P 500 on a Thursday statistically closes on the same day. That type of thing. But there’s a lot more to it as noted. But I doubt any of it would be of interest to our budding FOREX millionaires so I’ll not bore you with the finer detail.
Yeah that pair in particular just kept dropping. Removing “gaps” from my vocab for now lol. I think it just distracts me.
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