Do you know what is "Open Gap"? - Page 16
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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. #151
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    Most of the time our trade is left over the weekend we do see gap up or gap down , most of the time it happens we trade in the opposite direction of the gap, but some time it may not follow, that is the reason we need to study the market well before our action,but majorly it common to act like that to follow opposite .

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  3. #152
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    Gap occurs at times in the market possibly because of the weekend news which would have impacted the market and the effect of this is to see gap occurring in the market. If you feel that you have put stop loss on your trades and the gap occurred far beyond the price level where your stop loss is, you will surprised that your trade will not be closed at that price level but your stop loss will be moved in the same proportion down to where price is when market is open. With this explanation , you will now see the danger of leaving your trade over the week end as a day trader

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  4. #153
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    Quote Originally Posted by superfx View Post
    Most of the time our trade is left over the weekend we do see gap up or gap down , most of the time it happens we trade in the opposite direction of the gap, but some time it may not follow, that is the reason we need to study the market well before our action,but majorly it common to act like that to follow opposite .
    I do not like my trades to be left to the next week, this is a very bad thing that is affecting many traders i like the trades that will be concluded during the same week, this is to ensure that the trader is making the right decisions, not just to gable over the weekend that they did not know what is going to happen in the economic side of the market.

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  5. #154
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    Quote Originally Posted by Sylvertee View Post
    I do not like my trades to be left to the next week, this is a very bad thing that is affecting many traders i like the trades that will be concluded during the same week, this is to ensure that the trader is making the right decisions, not just to gable over the weekend that they did not know what is going to happen in the economic side of the market.
    That will depend on your own analysis then. Some traders do that because they are trading in the long term which means the weekend volatility won't pay them any heed. In fact, they are confident enough to hold it even for 1-3 months terms as well. If you have done your analysis and decide it's not good then just do it. Conclusion for every trader will depend on their own analysis after all.

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  6. #155
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    Quote Originally Posted by sekiryutei View Post
    That will depend on your own analysis then. Some traders do that because they are trading in the long term which means the weekend volatility won't pay them any heed. In fact, they are confident enough to hold it even for 1-3 months terms as well. If you have done your analysis and decide it's not good then just do it. Conclusion for every trader will depend on their own analysis after all.
    All trading decisions pertaining to scalping or long term trading needs to be based on analysis. New traders in the forex trading should be getting the knowledge and know about the what forex is all about. what's its role in the modern economy of the country. The person should grab all the opportunity to avail all possible information regarding forex market.

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  7. #156
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    Quote Originally Posted by splash View Post
    Yes, I know what open gaps are and from experience I know what they do on the market therefore thus seeing them now, I can trade them and make money from them. The thing about gaps is that they always get filled, mostly when it occurs during the weekends then we can make some money when they are feeling, but being that I am disciplined, I don't trade them that much. I only close my positions when it is my favour because it will fill and might go against me.
    i didnot understand but from my experience gaps comes when market open on new day, like i you want to check you can check aud pairs at 2am gmt+5 time, market almost daily make some gap, because when aud session starts so i think in session starting market can make gap or can go fast mostly

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  8. #157
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    Quote Originally Posted by naeem555 View Post
    i didnot understand but from my experience gaps comes when market open on new day, like i you want to check you can check aud pairs at 2am gmt+5 time, market almost daily make some gap, because when aud session starts so i think in session starting market can make gap or can go fast mostly
    What is this you are saying? The gap issues are so simple and it is just the difference between the market closing price and market reopening price on the trading chart. This is due to the things that happened during the weekend when the market is not active. But there are even gaps during the active trading day, and this might be because of extremely high volatility or market lacking liquidity at that time.

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  9. #158
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    Quote Originally Posted by Sylvertee View Post
    What is this you are saying? The gap issues are so simple and it is just the difference between the market closing price and market reopening price on the trading chart. This is due to the things that happened during the weekend when the market is not active. But there are even gaps during the active trading day, and this might be because of extremely high volatility or market lacking liquidity at that time.
    I close all my trades on Friday no matter they are in profit or loss. I know some traders do trade with gaps also, but lastly everyone's results depends on their trading quality. If i want to get experience and increase my trading skill and quality then i should hard work, gather knowledge, practice more and learn more.

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  10. #159
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    the market never sleeps, it will run and although at holiday days, and then we see that between saturday - sunday will give the gap at monday and for some traders who understand this moment can take the chances for making profit, but for me, i prefer to close my order at friday and because my basic is scalping, and i do not want to take the risk for it

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  11. #160
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    Nice sir, you are saying correct that if we are following the short term trading approach then its better to close our trades on Friday, because holding our trading for Saturday and Sunday would be harmful for us so many time, that's why I also like to work with intra day target, stop loss also not works when there is gap after Saturday and Sunday so we have to use our mind properly for the trading decisions.

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