Gaps in the market | Forex Factory

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Gaps in the market

  • #1
  • First Post: May 10, 2005 11:35pm May 10, 2005 11:35pm
Ive noticed recently a couple times where the market has closed only to open with a gap. It seems like the market usually corrects itself. Has anyone been able to profit from this consistently?
Timing is everything.
  • #2
  • May 11, 2005 4:31pm May 11, 2005 4:31pm
Hello Redart. The Forex market doesn't open and close like a normal market. It's open 24 hours a day. The gaps you are seeing may be caused by the Federal Reserve releasing economic data and playing in the market at those times is extremely risky.
  • #3
  • May 11, 2005 11:03pm May 11, 2005 11:03pm
Quoting redart
Ive noticed recently a couple times where the market has closed only to open with a gap. It seems like the market usually corrects itself. Has anyone been able to profit from this consistently?

Good observation. The market closes Friday after the NY session ends and opens Monday in Australia. Sometimes there are price gaps between the Friday close and Monday opening. Maybe if you check which pairs have gaps the most frequently......with or against the trend....after big moves associated with news or????? You may be able to pick up a pattern. Could be good for a quick 10-20.....pips. Good way to start the trading week.
Forex Trading: The hardest way to make easy money.
  • #4
  • May 12, 2005 3:11am May 12, 2005 3:11am
Quoting Norbecker
Good observation. The market closes Friday after the NY session ends and opens Monday in Australia. Sometimes there are price gaps between the Friday close and Monday opening. Maybe if you check which pairs have gaps the most frequently......with or against the trend....after big moves associated with news or????? You may be able to pick up a pattern. Could be good for a quick 10-20.....pips. Good way to start the trading week.
Thats exactly what I was thinking, a good way to pick up 20 PIPs. Do you have any experience with?
Timing is everything.
  • #5
  • May 12, 2005 8:23am May 12, 2005 8:23am
Quoting redart
Thats exactly what I was thinking, a good way to pick up 20 PIPs. Do you have any experience with?
I just took a quick look at a weekly chart of the Euro and it is easy to see there is frequently opening gaps. They do not seem to consistently be continuation of trends and I can not spot any patterns to it. Looks like random movement. Too bad because there are some 50-60 pip gaps! Maybe looking at daily candles may show a clue???? Not sure, but if you had an idea you could enter Friday and start the week up 40 pips in a flash. Scalping on a large scale
Forex Trading: The hardest way to make easy money.
  • #6
  • May 29, 2005 4:20pm May 29, 2005 4:20pm
Quoting redart
Ive noticed recently a couple times where the market has closed only to open with a gap. It seems like the market usually corrects itself. Has anyone been able to profit from this consistently?
ok redart, lets see if this holds true today. the EURUSD opened at 1.2524, more than a 50 pips gap from friday close. if what you are saying is correct we should see the EURUSD at 1.2575 within a few hours...
Relax and be happy.
  • #7
  • May 29, 2005 4:37pm May 29, 2005 4:37pm
Quoting merlin
ok redart, lets see if this holds true today. the EURUSD opened at 1.2524, more than a 50 pips gap from friday close. if what you are saying is correct we should see the EURUSD at 1.2575 within a few hours...
Merlin, are you considering the true open today to be at 17:00 est?
Steven
  • #8
  • May 29, 2005 4:46pm May 29, 2005 4:46pm
Quoting scpeter
Merlin, are you considering the true open today to be at 17:00 est?
yeah thats the time i am considering. what other choice could there be?
Relax and be happy.
  • #9
  • May 29, 2005 5:06pm May 29, 2005 5:06pm
Quoting merlin
yeah thats the time i am considering. what other choice could there be?
I asked the question because my broker (FXCM) opens earlier than 17:00 on Sundays. I just wanted to be sure. Thanks Merlin.
Steven
  • #10
  • May 29, 2005 6:18pm May 29, 2005 6:18pm
yeah!!just woke up..its really frustrated cos my LONG possition on EUR/USD being closed on 2519 where the lowest price is 2520...any comment?im using Fxsol..

Thank you
  • #11
  • May 29, 2005 10:35pm May 29, 2005 10:35pm
Quoting shahfx
yeah!!just woke up..its really frustrated cos my LONG possition on EUR/USD being closed on 2519 where the lowest price is 2520...any comment?im using Fxsol..

Thank you
I am trading FXCM and they open on a Sunday at 14:00 EST. I went short right at the open and by 16:15 EST I have picked up 50pips. I only did this beacuse of the french connection though.

On the charts fed by FXCM there is never a gap. I was not aware that other brokers open later on a Sunday.
  • #12
  • May 29, 2005 11:56pm May 29, 2005 11:56pm
Quoting koeiseun
I am trading FXCM and they open on a Sunday at 14:00 EST. I went short right at the open and by 16:15 EST I have picked up 50pips. I only did this beacuse of the french connection though.

On the charts fed by FXCM there is never a gap. I was not aware that other brokers open later on a Sunday.
So it is you! You sneaky traders at FXCM! Selling down them Euro before we can do anything!



Just kidding... Thank you for the info on FXCM. This is news to me.
  • #13
  • May 30, 2005 8:43am May 30, 2005 8:43am
FXCM is the exception and are not the rule. Most brokers start trading on Sunday at 17:00 EST.
  • #14
  • May 30, 2005 3:18pm May 30, 2005 3:18pm
Quoting narafa
FXCM is the exception and are not the rule. Most brokers start trading on Sunday at 17:00 EST.
i think FXCM is the ONLY broker that doesnt open at 1700. does anyone know of another?
Relax and be happy.
  • #15
  • May 30, 2005 3:19pm May 30, 2005 3:19pm
Quoting merlin
ok redart, lets see if this holds true today. the EURUSD opened at 1.2524, more than a 50 pips gap from friday close. if what you are saying is correct we should see the EURUSD at 1.2575 within a few hours...
looks like it didnt work out this weekend...lets see what happens next one...
Relax and be happy.
  • #16
  • May 30, 2005 3:27pm May 30, 2005 3:27pm
Quoting merlin
i think FXCM is the ONLY broker that doesnt open at 1700. does anyone know of another?
Oanda trades 24/7. You can open and close trades during the weekend, if you want to. Spread widens to 10 pips for the majors over the weekend, and the market starts moving with the Auckland traders early Sunday afternoon.

James
  • #17
  • May 31, 2005 12:06pm May 31, 2005 12:06pm
Gaps are suprisingly reliable. You can "fade the GAP" or "Close the GAP" on a Sunday open usually if the pair opens 20 pips higher or lower than the Friday close. It does not happen often but it is a common trading system in equities.

Here are some links:

http://www.stockcharts.com/education...pAnalysis.html

http://www.stockcharts.com/education...rategies1.html

It does not happen very often in currency trading, but pay attention to the GBPJPY and the EURJPY, which seem to GAP on Sundays more than other pairs.

Rob Booker
  • #18
  • Jun 2, 2005 4:22pm Jun 2, 2005 4:22pm
Quoting Redleg
Oanda trades 24/7. You can open and close trades during the weekend, if you want to. Spread widens to 10 pips for the majors over the weekend, and the market starts moving with the Auckland traders early Sunday afternoon.

James
hmmm...i smell an arb opportunity

thanks for the info red.
Relax and be happy.
  • #19
  • Jun 2, 2005 4:23pm Jun 2, 2005 4:23pm
Quoting robbooker
pay attention to the GBPJPY and the EURJPY, which seem to GAP on Sundays more than other pairs.
thanks for that tidbit rob, ill be watching..
Relax and be happy.
  • #20
  • Last Post: Dec 4, 2007 3:35am Dec 4, 2007 3:35am
Quoting merlin
hmmm...i smell an arb opportunity

thanks for the info red.

If it wasnt a joke could you elaborate briefly how you would take advantage of this?
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