EURUSD

Quoting 2+2=4ex

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{quote} I'm not endorsing the gap strategy nor do I personally trade it, but I have been keeping record of it since the start of 2012. I do it simply for record keeping and study. As far as markets never closing, that is true. What we are referencing by "gap" is the broker gap only; not to be confused with a market close. Some more statistics: There were 4 occasions where the gap did not close within one week in 2012. The average loss was 142 pips. However, the annual end result was +190 pips since the gap closed 91% of the time within one week....

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Quoting ali-bhai

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GAPS: gaps has now a days very less or now value to look for trading opportunity due to 24 hr nature of the markets gap theory usually works well years ago when every day market closes and opens, gap theory was originally built of "daily" time frame gaps for weekly gaps it is always 50/50

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Quoting Alexone

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{quote} I dont keep statistics on gaps, but I would naturally assume that the higher the gap the less chance it will have to close because a large gap implies that there were a lot of positions that were waiting for a different outcome of the market and that those position got trapped. On the eu, even tho the gap is not that big, i would assume that it gapped up on the sellers from 1.3325 for a reason. But who knows...maybe it will get 'filled'.

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Quoting 2+2=4ex

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{quote} I would say 'trading' a "gap" is more of a discipline than a strategy. I choose to trade off my experience with technical and fundamental analysis, however for the inexperienced trader, a gap provides a beginner with an exit price. Statistically that has shown to be better than just randomly throwing darts at a chart for a noob.

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Quoting Alexone

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{quote} I agree with this but you're missing the bigger picture. Indeed gap trading provides the beginner with an exit price but about about the entry and the stop loss prices? Where the heck do you place them? Arent these the ones that truly matter after all?

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Quoting 2+2=4ex

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{quote} I'm not missing anything cause I don't really care to see the bigger picture (as far as how to trade it). All I am concerned with in my record keeping is how often price returns to the prior weeks closing price within the current week. As for how someone could trade it, hypothetically speaking, entry would be current week's opening price and stop loss whatever they feel like risking in relation to their position size (2%, 5%, whatever).

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Quoting MaxDoom

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I had thought that it was looking good for once, no signs of gap talk... how wrong could I be

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Quoting MaxDoom

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I had thought that it was looking good for once, no signs of gap talk... how wrong could I be

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Quoting TauTrader

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{quote} Good day to you, MaxDoom My apology - I was just stating opinion.. Will stay way from this going forward. All the best

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