Do you know what is "Open Gap"? - Page 3
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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. #21
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    Trading gap happen when large volume in friday last week still open. Gap in price also can be generate by the news that release in the Sunday or in the Saturday. One an example, when the memorandum of the Greece happen on the Sunday, then the price of the EURUSD on the monday is gapping.

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  3. #22
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    Quote Originally Posted by aris90 View Post
    Trading gap happen when large volume in friday last week still open. Gap in price also can be generate by the news that release in the Sunday or in the Saturday. One an example, when the memorandum of the Greece happen on the Sunday, then the price of the EURUSD on the monday is gapping.
    the gap of the referendum was a bad one, it went against the Euro and when the market opened, it quickly move to the side that was against the opened gap. meaning that this gap was filled and the market when up and down for the rest of the trading week. it is not good to trade this gap.

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  4. #23
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    Quote Originally Posted by cozard007 View Post
    The gap is normal in the forex business, since the market has closed since last week, it would be reacting to some news and economic event along the line, and before you know it, there would be gap in the market at any point in time. And to me, the gap is not tradable, I tried it with the approach of some traders and it all failed.
    gap is not normal to me, i do not like the gap and it can be traded with trick at times. that trick can not be working for traders all the time and the traders with the aggressive trading skills will make money in gap when they sue the 5 minute chart to trade it and the stop loss is be the help too.

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  5. #24
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    Quote Originally Posted by silverlady View Post
    gap is not normal to me, i do not like the gap and it can be traded with trick at times. that trick can not be working for traders all the time and the traders with the aggressive trading skills will make money in gap when they sue the 5 minute chart to trade it and the stop loss is be the help too.
    [lang=id]need a good understanding to use this method for trading, and traders need to know some steps in the market with pay attention for some factors as their approaches, they can use the news schedule or also use the chart itself too, and the main thing here that they understand to face and overcome some conditions and if the system does not work well[/lang]

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  6. #25
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    Quote Originally Posted by samprazaan View Post
    [lang=id]need a good understanding to use this method for trading, and traders need to know some steps in the market with pay attention for some factors as their approaches, they can use the news schedule or also use the chart itself too, and the main thing here that they understand to face and overcome some conditions and if the system does not work well[/lang]
    no condition to be understood here than for traders to be craeful of the gaps in trading. the gaps of the market are not explainable, and all the theories to trade it are not working. it is not in new, it is not in indicator trading, it is about making money through what you can not prove.

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  7. #26
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    Quote Originally Posted by aris90 View Post
    Trading gap happen when large volume in friday last week still open. Gap in price also can be generate by the news that release in the Sunday or in the Saturday. One an example, when the memorandum of the Greece happen on the Sunday, then the price of the EURUSD on the monday is gapping.
    Gaps in trading often occur and in this scenerio it's mostly with the movement of the market during the weekend and hence the market opens on Monday morning, we can see this gap. So many things could cause lots of gap in the market and we should note of this and try our best to close our trade at the ending of the trading week. There is no explaination about this gap and I am in support that its normal in forex that's why we must plan our trade.

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  8. #27
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    Quote Originally Posted by silverlady View Post
    no condition to be understood here than for traders to be craeful of the gaps in trading. the gaps of the market are not explainable, and all the theories to trade it are not working. it is not in new, it is not in indicator trading, it is about making money through what you can not prove.
    [lang=id]well, if you pay attention for news schedule, you will make approaches to see the next movements in the market, and so here is the traders take this phenomenon or chances to take some benefits from it, and it means, they try to learn the next news schedule carefully before the set the order before the market is closed,[/lang]

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  9. #28
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    I think that the open gab is a meaning ofr the times when w see that the market has moved very strongly at the two days of holiday . but it is still moves at the first day of week of work . so we have to see the best strategies cabn not get any profit . so I think in the trading tools can get us more prfoit when we make good use of the gabs

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  10. #29
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    There are many view of trader's about the gap trading but personally I don't wait for the to open my trades, I have a simple analysis for trading and that is to wait for the proper breakout, I use technical analysis. Gap can be fill many time by the market but there is no clear idea about that when market will fill that gap so better to do trade with technical analysis, sentimental analysis etc.

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  11. #30
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    Open gap can be generated due to a big movement , hot news in the market , this is why we need alwyas to focus before opening any deal . in the other part if you analyse well your chart and see a support or resistance level you can benefit form this gap so much.

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