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  • #64,981
  • Jan 15, 2013 3:03am Jan 15, 2013 3:03am
Quoting Pip_Warrior

It was my understanding that Gaps are an area where there was little to no liquidity or back and forth trading (I know that term does not make much sense, but I'm not an expert so bare with me). There is hardly any resistance in these areas so when price goes into the area there is nothing to stop it continuing to fill that Gap. All this seems to offer is a higher probability for closing the Gap and, as seen by history, not a certainty.
Not the weekend gap. Weekend gap exists because the official market opens up earlier than the majority of brokers do. Oanda for example, opens earlier. So, the activity starts couple of hours before most see their brokers open. So, when they do open, they just start with the most recent quote. Remember that brokers also close at different times, so part of the gap can result from that too.


The gap you are talking about is a momentum driven gap which can exist any time of day. Those exist because of the order imbalance in that particular moment. Simply put, someone is demanding more through his market order than is offered through market and limit orders combined. Those gaps are best seen during high impact news events. On a smaller scale, mini gaps happen very often.

However, that doesn't mean those intraday gaps must be filled. Just because there wasn't orders existent during the gap creation doesn't mean there won't be orders when price reach back "into the gap". As Piptrapper put it, they tend to fill because of the self-fulfilling prophecy
  • #64,982
  • Jan 15, 2013 3:21am Jan 15, 2013 3:21am
The market never closes just your broker.

EDIT: The interbank market for currencies is always open. The retail brokers close during the weekend (and certain holidays). This means that the banks can trade when you can't and they move the market during the weekends and other times that the retail brokers are closed.

Quoting lumesh
Not the weekend gap. Weekend gap exists because the official market opens up earlier than the majority of brokers do. Oanda for example, opens earlier. So, the activity starts couple of hours before most see their brokers open. So, when they do open, they just start with the most recent quote. Remember that brokers also close at different times, so part of the gap can result from that too.


The gap you are talking about is a momentum driven gap which can exist any time of day. Those exist because of the order imbalance in that particular moment....
  • #64,983
  • Jan 15, 2013 4:24am Jan 15, 2013 4:24am
Quoting TheSwede
The market never closes just your broker.

EDIT: The interbank market for currencies is always open. The retail brokers close during the weekend (and certain holidays). This means that the banks can trade when you can't and they move the market during the weekends and other times that the retail brokers are closed.
  • #64,984
  • Jan 15, 2013 4:38am Jan 15, 2013 4:38am
Quoting TheSwede
The market never closes just your broker.

EDIT: The interbank market for currencies is always open. The retail brokers close during the weekend (and certain holidays). This means that the banks can trade when you can't and they move the market during the weekends and other times that the retail brokers are closed.
Sure, if u put it that way.

You can go to your local bank on saturday and exchange currencies if you wish.

And you can arrange a deal with your friend to buy his apple stocks on saturday provided that both parties accept the price.

That's why i referred to OFFICIAL market open.

Yes, you can trade on saturdays but finding a counterpatry will probably cost you 100+ pips, that's all...
  • #64,985
  • Jan 15, 2013 5:05am Jan 15, 2013 5:05am
Yes the spread is a lot bigger (not a 100 but maybe 10 pips on EUR/USD), but there is a market and trades do take place.
Reuters feeds prices on currencies during the weekend and we are talking about a decentralized market that never sleeps.
It is not an exchange that uses different opening strategies to establish an equilibrium price at opening.

Quoting lumesh
Sure, if u put it that way.

You can go to your local bank on saturday and exchange currencies if you wish.

And you can arrange a deal with your friend to buy his apple stocks on saturday provided that both parties accept the price.

That's why i referred to OFFICIAL market open.

Yes, you can trade on saturdays but finding a counterpatry will probably cost you 100+ pips, that's all...
  • #64,986
  • Jan 15, 2013 7:53am Jan 15, 2013 7:53am
Quoting TheSwede
Yes the spread is a lot bigger (not a 100 but maybe 10 pips on EUR/USD), but there is a market and trades do take place.
Reuters feeds prices on currencies during the weekend and we are talking about a decentralized market that never sleeps.
It is not an exchange that uses different opening strategies to establish an equilibrium price at opening.
Hey look who's back.
Happy New Year my Swedish friend. Hope all is well and that you're swimming in green pips.
Those who say it cannot be done should not interrupt those who are doing it
  • #64,987
  • Jan 15, 2013 8:02am Jan 15, 2013 8:02am
Happy New Year to you too and everyone else.

Its been good to be away for a while. Green pips to you all.

Still bearish on fibre?

Quoting PipTrapper
Hey look who's back.
Happy New Year my Swedish friend. Hope all is well and that you're swimming in green pips.
  • #64,988
  • Jan 15, 2013 8:12am Jan 15, 2013 8:12am
Quoting TheSwede
Yes the spread is a lot bigger (not a 100 but maybe 10 pips on EUR/USD), but there is a market and trades do take place.
Reuters feeds prices on currencies during the weekend and we are talking about a decentralized market that never sleeps.
It is not an exchange that uses different opening strategies to establish an equilibrium price at opening.

yes, you are right.

But i don't understand how all of this links with the gap discussion ?

As i said, the gaps are present due to broker different closing and opening times. To most of us, the market IS closed, but yeah, in reality, you can trade whenever you want whatever you want.
  • #64,989
  • Jan 15, 2013 8:19am Jan 15, 2013 8:19am
To me there is no such thing as gaps in a market that is always open.
I do however pay attention to session gaps.
Lets say London session "closes" at 1.324 and "opens" at 1.33. That is a session gap. Try to find them and see how the trading look like during that day.

Quoting lumesh
yes, you are right.

But i don't understand how all of this links with the gap discussion ?

As i said, the gaps are present due to broker different closing and opening times. To most of us, the market IS closed, but yeah, in reality, you can trade whenever you want whatever you want.
  • #64,990
  • Jan 15, 2013 8:34am Jan 15, 2013 8:34am
Quoting TheSwede
To me there is no such thing as gaps in a market that is always open.
I do however pay attention to session gaps.
Lets say London session "closes" at 1.324 and "opens" at 1.33. That is a session gap. Try to find them and see how the trading look like during that day.


aaight...interesting.
  • #64,991
  • Jan 15, 2013 8:40am Jan 15, 2013 8:40am
Quoting TheSwede
To me there is no such thing as gaps in a market that is always open.
I do however pay attention to session gaps.
Lets say London session "closes" at 1.324 and "opens" at 1.33. That is a session gap. Try to find them and see how the trading look like during that day.
I've found this to be one the most most effective ways to determine levels for the next day. Sticking to a session & looking back on previous days session gives great levels for the next session. Also gives of a feel for the direction of the new session based on whether it opens above, below or in the middle of the previous session.
It works till it doesn't
  • #64,992
  • Jan 15, 2013 9:07am Jan 15, 2013 9:07am
Quoting DaEdge
I've found this to be one the most most effective ways to determine levels for the next day. Sticking to a session & looking back on previous days session gives great levels for the next session. Also gives of a feel for the direction of the new session based on whether it opens above, below or in the middle of the previous session.
Yep it works... till it doesn't... till it does again
Those who say it cannot be done should not interrupt those who are doing it
  • #64,993
  • Jan 15, 2013 9:11am Jan 15, 2013 9:11am
Quoting TheSwede
Happy New Year to you too and everyone else.

Its been good to be away for a while. Green pips to you all.

Still bearish on fibre?
Yes I'm still bearish fibre, but that's just my sentiment. Trade-wise, I'm now just scalping till the manure hits the fan. The break even point for my open shorts was 1.3270. At 1.3198 I went long and I have since neutralized most of my shorts. Still ended up almost 150% in the green for 2012, but so far for 2013 I am only up 3%... The year is young though.
Those who say it cannot be done should not interrupt those who are doing it
  • #64,994
  • Jan 15, 2013 9:22am Jan 15, 2013 9:22am
Quoting PipTrapper
Yes I'm still bearish fibre, but that's just my sentiment. Trade-wise, I'm now just scalping till the manure hits the fan. The break even point for my open shorts was 1.3270. At 1.3198 I went long and I have since neutralized most of my shorts. Still ended up almost 150% in the green for 2012, but so far for 2013 I am only up 3%... The year is young though.
So, no morning outlooks till manure hits the fan!?
69
  • #64,995
  • Jan 15, 2013 9:36am Jan 15, 2013 9:36am
Remember always be in the right side when it does happen.
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Trade smaller than rational because the market is irrational...
  • #64,996
  • Jan 15, 2013 9:41am Jan 15, 2013 9:41am
Anyone heard about this? Buba calling back all its gold? so at last gold asserting itself.lol soon we will see trillion dollars bills

http://www.zerohedge.com/news/2013-0...d-new-york-fed
Allah has permitted trade and has forbidden interest [koran]
  • #64,997
  • Jan 15, 2013 10:24am Jan 15, 2013 10:24am
Quoting drzakir123
Anyone heard about this? Buba calling back all its gold? so at last gold asserting itself.lol soon we will see trillion dollars bills

http://www.zerohedge.com/news/2013-0...d-new-york-fed
It may take time to sort through all that tungsten.
Trade smaller than rational because the market is irrational...
  • #64,998
  • Jan 15, 2013 10:28am Jan 15, 2013 10:28am
Quoting EuroTraderJD
It may take time to sort through all that tungsten.
http://www.zerohedge.com/news/2012-0...old-coins-here
Tracking the Specialists.
  • #64,999
  • Jan 15, 2013 10:35am Jan 15, 2013 10:35am
Quoting Connected
http://www.zerohedge.com/news/2012-0...old-coins-here
Buyer beware...
Trade smaller than rational because the market is irrational...
  • #65,000
  • Jan 15, 2013 12:55pm Jan 15, 2013 12:55pm
Did JUNCKER just let the bear out of the den?

Eurogroup's Juncker says Euro exchange rate 'dangerously high'.

DUH you think?????
Trade smaller than rational because the market is irrational...
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