Do you know what is "Open Gap"?
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  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. #2
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    Open gaps is when the market seems to mis time on charts there is a discontinuation of great forms shown by these markets these is how things work the best form of any one trade is these market show the imper version of when the great trades can be well insinuated the is when we all know that the market is working well in all trades we see that helps a lot when we trade forex. the market seems to have compressed whether during the weeknd or holidays but when we see these kind on a live account the n these is due to upsurge of either news or an economic event

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  3. #3
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    Market open gap is never my issue, I know it very well, but it is a big problem if any trader thinks they can trade the gap. Because, there are some theories that says the gaps are often filled after the market open, but I have seen the market ignoring that theory in countless of time, and I think traders should be careful about that. So, I can never dare trading gaps.

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  4. #4
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    Quote Originally Posted by cozard007 View Post
    Market open gap is never my issue, I know it very well, but it is a big problem if any trader thinks they can trade the gap. Because, there are some theories that says the gaps are often filled after the market open, but I have seen the market ignoring that theory in countless of time, and I think traders should be careful about that. So, I can never dare trading gaps.
    [lang=id]i eve did it several years ago, sometimes i made good results and sometimes i got losing too, i had pay attention to the news at saturday and also sunday, but it will not grant us to achieve the goals, and also, i got the problem with my psychologies when i leaved the market and there was still the order run in the marker or also pending order and although had already set the stop loss[/lang]

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  5. #5
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    Quote Originally Posted by samprazaan View Post
    [lang=id]i eve did it several years ago, sometimes i made good results and sometimes i got losing too, i had pay attention to the news at saturday and also sunday, but it will not grant us to achieve the goals, and also, i got the problem with my psychologies when i leaved the market and there was still the order run in the marker or also pending order and although had already set the stop loss[/lang]
    Of course, apart from the fact that it is too risky to trade, the trader might be affected all through the weekend by the feelings that he is in a trade, and this might even affect his mood throughout the weekend. It is better for all positions to be closed by the trader. And if they would maintain any position over the weekend, they should have a very large equity to do that.

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  6. #6
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    Quote Originally Posted by cozard007 View Post
    Of course, apart from the fact that it is too risky to trade, the trader might be affected all through the weekend by the feelings that he is in a trade, and this might even affect his mood throughout the weekend. It is better for all positions to be closed by the trader. And if they would maintain any position over the weekend, they should have a very large equity to do that.
    [lang=id]yes, i do better to close all my positions before the market is closed, but sometimes i have to let it run too when the order still run in floating minus but i am really sure that market will move back based on my analysis, and of course, stop loss is set for it to protect my balance and this is the risk that had been taken by me[/lang]

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  7. #7
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    Yes i know that pretty well. Gaps occurs all the time in the market i mean in the stock market or in indices. In forex market the gaps are pretty rare but the gaps fills up pretty well. If you see a gap of up or down you can predict the market almost 100 percent of the time.

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  8. #8
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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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  9. #9
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    Yes, I experience "open gap" several times with my trades. It is very tough decisions whether you keep your position open or close at the end of the weekend. In my trading career I several time losses and a very few time I get profit from the "open gap" of the market. So from my opinion I will advice you to close any open position before end of the weekend.

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  10. #10
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    Market gaps is always frustrating to me, I hate gaps and I hate being in a position where there is a gap, because you can close or open any trading during the gap, then stop loss or take profit can not be executed during the gap. It may favor me if my take profit level is in between the gap but will also increase loss if my stop loss is in between the gap, so that is why I prefer closing all trade on Friday, because of the gaps in Sunday

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    Always have realistic DREAMS!

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