Why Gaps Happen - Big Boy's Moves

Hi every one,

I have been pursuing my own trading system based on manipulation and Big Boy moves - the only truth that i can feel and witness with my own eyes in this money game, and profitable from them also.

For purpose of improving my trading, one of the things that i am trying to figure out lately is "GAP".

I have been googling for quite a time. Google is full of common knowledge which says that Gap happen in case of big news or in case of weekends and holiday, and that the price shall be the first price listed on the exchange after days off.

Of course, the things above is true, but, I know that they are only half of the truth. It is not all about the nature of gap.

Some pro i know says that bigboy does something at weekends, kind of EXCHANGING ASSESS, that causes gap in the next active sessions. Gap in these cases show many information about bigboy's intention for the next week or next month, etc.

I know that there are many pro trader in this forum make your trade with gap. Can some pro help me to clear this issue please? What does bigboy really do so that gap happen after weekends??

I am very thankful for any picece of information.

I think the easiest explanation for this is that there are fewer major economic and political events during the weekend, and this leads to the market becoming too calm and it's even hard for you to find some strong situation right after the weekend, because the market becomes too sluggish and literally makes no money. In fact, a Gap is a great expectation, an assumption that is associated with some serious changes. We all focus on some hypotheses, we all look at the information that is publicly available. And this allows us to act. Sometimes we are too straightforward, and the market as a whole. So, we see such results.

Currency doesn't cease to exist during the weekend, just because retail brokers are offline.

Hi OnlineAddict,

Your idea that "Currency doesn't cease to exist during the weekend, just because retail brokers are offline" are great. Thank you for your idea. Nevertheless, i think that it is not the whole story and that could not give me satisfaction.

The thing that i am trying to focus on is that, how big boys "exchange" their assess, why they do that at weekend to make gap.

We need to dig deep to find out

Aren't you able to exchange currency on the weekends? Currencies would move every day even if retail brokers didn't exist. Its not the brokers, who create the moves...they only allow people to bet on them.