Do you know what is "Open Gap"? - Page 12
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Thread: Do you know what is "Open Gap"?

  1. #1
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    Do you know what is "Open Gap"?

    Forex trading won't always stay steady all of the times and we always need to be prepared for anything worse that might just happen. If we want to make a good income in this business, then we need to specially watch the weekend's position. As for the reason, the chance of open gap is very high compared to ordinary days trading. I won't say things like open gap won't happen in ordinary days trading as well. They might be if a high news impact just suddenly got released.

    As for the open gap in the weekend, every traders will need to watch out for the possible jump. And as how to check it, you need to check the news on the saturday and the sunday. If you find a breaking news or a high impact news, then there is a chance the market will open in a big gap whether it's going upwards or even downwards.

    Here's the example:


    You might think again about closing the position over the weekend or just hope to earn even more money from the gap.
    But let me tell you something, even if you used stop loss in this kind of event, it won't work at all if the gap is further than your stop loss.

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  2. #111
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    Quote Originally Posted by cutiekc View Post
    Yes I do, oil opened with a huge gap up last night and I think that will be a good advantage to those who are buying it. Well, the point remains that we would never know when the gap is occurring, therefore basically what we have to do is to be good at making our own analysis, we might not be able to know when the gap will occur but then making good analysis will make us enter one time.
    the oil will always gap since it is more volatile, and there are many activities of the weekends which will be telling on the oil. that is the reasons traders have to know what they stand for when they are doing the oil trading, that should be professional with traders too.

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  3. #112
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    Quote Originally Posted by silverlady View Post
    gpb opened with the wise gap today, it tried to fill some back with many of its pairs, but later move toward the side of the gap for more losses, that is a strong market today. i guess traders are alert to trade the common currency, that is why it is falling without news.
    I agree with you, I saw it on Sunday as well, this is because of some activities that happened during the weekend. And it is good for traders not to trade the gap in my opinion, and you could imagine the traders that opened the trade for the gap to fill, in the GBP pairs, they would be lamenting now, because the market fought back.

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  4. #113
    Trader cutiekc's Avatar
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    I read it somewhere that the market opens with gap because of the activities that the traders has been doing in the market which has been making the market move during the weekends. But that is not the problem,we can make money from such if we should learn and understand how they work, that is the reason why learning is the way.

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  5. #114
    Trader techboy's Avatar
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    Quote Originally Posted by cozard007 View Post
    I agree with you, I saw it on Sunday as well, this is because of some activities that happened during the weekend. And it is good for traders not to trade the gap in my opinion, and you could imagine the traders that opened the trade for the gap to fill, in the GBP pairs, they would be lamenting now, because the market fought back.
    Gap sometimes can be filled right away or it takes time that is why when a trader attempts to trade in this approach he must have to set specific stop loss and let go in case the market does not move on the expected direction, we cannot hold on to a losing trade just because we believe that the gap will be filled in.

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    " Trading is 70% Psychology, 15% Risk Management and 15% Strategy ! "

  6. #115
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    Quote Originally Posted by techboy View Post
    Gap sometimes can be filled right away or it takes time that is why when a trader attempts to trade in this approach he must have to set specific stop loss and let go in case the market does not move on the expected direction, we cannot hold on to a losing trade just because we believe that the gap will be filled in.
    [lang=id]stop loss become the last defense for traders to limit loses, and do trading with gap will need it, and traders need to pay attention for some points that should understood with well, so good to take a look at the calender economic for next moments then they can determine the order setting and how much the risk will taken[/lang]

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  7. #116
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    Open gaps are when the market jumps and these are usually due to pressured closed markets thats how the market has gaps or when the market just juts from a series of serious events a market can have a gap but most of the time it appears on Monday from a closed market.

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  8. #117
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    Quote Originally Posted by samprazaan View Post
    [lang=id]stop loss become the last defense for traders to limit loses, and do trading with gap will need it, and traders need to pay attention for some points that should understood with well, so good to take a look at the calender economic for next moments then they can determine the order setting and how much the risk will taken[/lang]
    Stop loss is very good, it will defend the account of traders in many ways, but the stop loss will not be the only one needed by the trader, because in the case of gap for example, it can not work as the gap might have jumped the stop loss. Ad in this case, i believe traders shsoudl try to keep in track what they need form the market too and work it out with smartness.

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  9. #118
    Trader shambca7's Avatar
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    Correct the market gaps can be seen on Monday most of time but I am a long term trader so hold my position many time this happened to me already that I have cut my trade with the gaps but that's the nature of this business some time you lose and some time you win. I don't want to be afraid or want to be sad for this because I enjoy my consistency in forex.

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  10. #119
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    Nice sir yes you can work according to your planning and trading system but I am a short term trader so I love to focus on short term time frames Mostly I spend time with five minute chart time frame but we need regular activity in those time frames. I also like long term time frames because a trader need less activity in long term time frames and they are less choppier too.

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  11. #120
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    yes the open gap as trader might gains with the return on consequence works of the good offers to leaves of chance on trader to manage of the deeper with the evaluation on appealing the movesment within the late days on weekdays to gains with the beginning of one to close 10-30 pips with the movesment of the open gap with the market.

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