I’m new to trading the forex markets and so I don’t quite no all the ins and outs of chart behavior specific to these markets.
I woke up about 5 minutes ago and turned on my charts. I trade tick charts primarily during the day (based off orders into the market, i.e. volume) and I noticed that almost no volume happened last night. Basically no bars had been formed since the end of yesterday till right now, maybe - 1-2 bars where typically there would be 20 or 30 indicating there was VERY light volume last night. Then at 10EST most of the pairs spiked in a direction. Was there a big news report the markets were waiting for?
On a time chart the charts show a gap down. This concerns me because had I been holding a position it could’ve jumped my stop loss. I make sure i go flat with my positions into the weekend to avoid these gap scenarios, but this was unexpected (at least to me).
Can anyone tell me what was going on this morning to cause the gaps (news?)? I’d like to be aware of this so I can protect myself from an adverse gap situation.
