Mind the Gap!

Hi all

any strategies on here for playing gaps as on GU today. Do these markets normally continue or reverse and fill the gap or is there no such thing as "normally" in Forex!

Ta

max

I think either the gap will fill or it won't. I can bet on that.

The fact is that gaps usually, but not always, fill in currency trading. It is dangerous to trade the gap alone because sometimes it will take days, weeks or even months to fill. If you do your analysis properly, and it looks like a good probability that a trade will fill a gap, then the gap is one more tool in your analysis. Try a web search of "trading forex gaps".

Hope this helps,

Personally I have never bothered with the "Gap". Most of what people are calling a gap is nothing more than your broker opening later than some others. I hear people saying "it MUST fill in the gap". Wonder how long it is going to take on the gbpjpy?? I am sure that somewhere down the line when price does move back up, even if it is weeks later, someone will say "SEE! I told you it has to fill in the gap." LOL!

In my opinion it is too risky a trade to be worthwhile.

Yes, the gap usually fills. But this broker starts about an hour or so late, so there's a gap.

http://i43.tinypic.com/2qv44dt.gif


http://i43.tinypic.com/352hnuw.gif

If you are trading heavy lots, you only need the gap trade...

http://i39.tinypic.com/2czep1g.gif



Current gap from Friday Close to Monday Open in pips
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Percentage gap down filled
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