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Gaps

  • #1
  • First Post: Sep 18, 2006 11:26pm Sep 18, 2006 11:26pm
I do not know much about the subject, but in stocks there is a saying that all "windows" (gaps) must be closed, basically meaning that if a stock gaps up or down, it will be filled in going the opposite way (ei: Gap up will go down to previous prices, gap down will go back up to previous prices). I know it doesn't happen very much at all in forex, but after the weekend opened up quite a few pairs gapped, and since have been filled. I was just wondering if this holds true to forex as well, or what?
  • #2
  • Nov 13, 2017 10:35am Nov 13, 2017 10:35am
Quoting ScottH
I do not know much about the subject, but in stocks there is a saying that all "windows" (gaps) must be closed, basically meaning that if a stock gaps up or down, it will be filled in going the opposite way (ei: Gap up will go down to previous prices, gap down will go back up to previous prices). I know it doesn't happen very much at all in forex, but after the weekend opened up quite a few pairs gapped, and since have been filled. I was just wondering if this holds true to forex as well, or what?
It doesn't have to be filled in either market, although commitments at a specific price can help cause a forex gap to close. A gap is just that - a gap in the market where there were no or few fills. It can be extremely bullish or bearish and should not be traded for what it is. There are gaps from years ago still "waiting to be filled".
Gone to a better place
  • #3
  • Edited 10:57am Nov 13, 2017 10:45am | Edited 10:57am
Well nothing is must in forex, but with proper R:R and eagle eye, gap trading can be way to go.
  • #4
  • Nov 14, 2017 10:19am Nov 14, 2017 10:19am
Quoting ScottH
I do not know much about the subject, but in stocks there is a saying that all "windows" (gaps) must be closed, basically meaning that if a stock gaps up or down, it will be filled in going the opposite way (ei: Gap up will go down to previous prices, gap down will go back up to previous prices). I know it doesn't happen very much at all in forex, but after the weekend opened up quite a few pairs gapped, and since have been filled. I was just wondering if this holds true to forex as well, or what?
Currency market is always volatile! Yes, gap is also available in Forex but not as much as Stock! If you are a swing or positional trader, then it’s okay with Forex!
  • #5
  • Nov 16, 2017 4:19am Nov 16, 2017 4:19am
I thought I made it clear enough in my previous post. Trading gaps in Forex is a terrible strategy. The gap is in your broker's feed. Read about gaps is my advice. If you think it is viable, then research it. All my research points to one thing. A gap is a massive change of sentiment. It may reverse, but you can not rely on it.
Gone to a better place
  • #6
  • Apr 19, 2018 6:34am Apr 19, 2018 6:34am
Quoting smikester
Trading gaps in Forex is a terrible strategy.
No way to disagree with your opinion. This is way, most of the time I close all of my trades before the Friday night. I have no control on the gap market, so I am not interested about gap trading.
  • #7
  • Apr 29, 2018 9:24am Apr 29, 2018 9:24am
Quoting smikester
I thought I made it clear enough in my previous post. Trading gaps in Forex is a terrible strategy. The gap is in your broker's feed. Read about gaps is my advice. If you think it is viable, then research it. All my research points to one thing. A gap is a massive change of sentiment. It may reverse, but you can not rely on it.
What makes it any more horrible then a person trying to predict what the next hourly candle will close like? Trading the gap and doing it in a specific way will result in an incredible edge to the person who does it correctly. Sadly, most people think closed minded there for restricting and minimizimg the edge that one has.
  • #8
  • Apr 30, 2018 3:54am Apr 30, 2018 3:54am
In my experience most gaps get filled, but do not get fooled even some gaps have not been filled yet or will never get filled. Gap trading can be profitable, but beware of the dangers.

Good luck!
  • #9
  • May 6, 2018 2:55am May 6, 2018 2:55am
Quoting ScottH
I do not know much about the subject, but in stocks there is a saying that all "windows" (gaps) must be closed, basically meaning that if a stock gaps up or down, it will be filled in going the opposite way (ei: Gap up will go down to previous prices, gap down will go back up to previous prices). I know it doesn't happen very much at all in forex, but after the weekend opened up quite a few pairs gapped, and since have been filled. I was just wondering if this holds true to forex as well, or what?
You better research on it. So far I have seen most of the gaps get filled. Sometimes it takes longer time but usually it get filled. It may vary depending on pairs. But as we Know there nothing is 100% sure in forex trading. The best option is- research on all your favorite pair.
  • #10
  • Last Post: May 7, 2018 1:16am May 7, 2018 1:16am
I have learned, a gap is a break between prices on a chart that occurs when the price of a stock makes a sharp move up or down with no trading occurring in between.
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