Gap trading profitable.

Today I will tell you that trading spaces. You may notice some of the price gap on the charts while trading on Monday. Not yet, you better have the following question: "do you even think of trading spaces and make money with them."

The first site, the gap seems easy but trading with the underwater rocks, certainly. You don't know how to do it, and then sit, please, and try to learn.

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What is the Gap?

Forex week gap is the difference between the market price of closed Friday and reopen Monday, one. If this difference is too big. It appears the market gap It can be noticed easily, if you look at the chart. As in my example below:

Forex week gap.

It is natural that it does not happen every week. You can see the main channel approximately once a month. Sometimes this occurs more often, or hard to find, but the truth is … You can earn money from them.

Types of Forex gap:

Forex traders, these type of "cutting" chart.

    1. The common spaces

It is the type most often met with. And it means that there is nothing abnormal, it occurs most often in different currency pairs. But generally do not, we will get. They get filled quickly. And do not get a large, often.

    1. Breakaway gap

It is through price support or resistance level. In addition to this, we can use it for spaces in the trading week. Forex price moving strongly up or down after such a gap. People have called this the ' Forex ' gab also because the quote ' breakout ' from the collection and start a movement.

    1. Exhaustion gap

These usually appear at the end of the trend. The move by the price gap, and then after that the quote back in the opposite side.

    1. Continuous space (gap to escape).

They usually appear in the middle of the trend. It indicates a continuation of the trend and tell the trader Forex trading spaces in pairs trading them as safe as possible. Especially if the trader this way with others. Like R & S line method

Why do they not appear or not.

They emerged. There are a number of reasons why the order gather this weekend (or before the market close) and this hotel will open again Monday. It encourages the bounce of price.

But it doesn't happen every time, but if they are overweight, the most important purchase. Or sell.

Note that prices are tending to. Closing the gap (however not always), so you can make a calm and open a transaction, make sure that you get to anticipate trends correctly before.

Always remember two rules:

1 if you see a blank space where the trend started. (After the sale of the previous wave or extreme), Expect major growth rates
2 If the gap that emerged from a long, continuous trends. It signalled the end of the

The gap in the week, Forex trading strategy

It may look easy: simply buy or sell in the direction to close the gap, but something that is very complicated here … All currencies are not good enough for trading. Forex has some gaps, lack of regularities may make the process of trading cannot be forecast. But when we talk about trading. In addition, you should set a stop loss correctly. Because often, much can be moved in the opposite direction before closing the gap.

Currency pair.

The most suitable partner for the trading spaces in Forex EURJPY, GBPJPY, GBPUSD with EURUSD, the possibility of closing the gap is approximately. 70% so suggests that you traded the most volatile JPY pairs. Not see a couple other vets, especially

Can be used on any time frame, but I usually buy in each candle is M30 at 30-minute trading period – once a week.

The rules for this week's Forex trading strategy gap.

    1. Forex gap is more than 20 pips everything less than this number. Cannot be blank

 

    1. Some of my fellow traders, using the following strategy of trading spaces. Them into the market after the close of candles. The first Monday after the opening of the M30 (if gap appears), it is so because the market is moving in the right direction but does not go to the gap off it. They calculated stop loss about their profits to multiply With a 1.5 x
      For example, if TP = 35 pips, SL will be around 53-55 point (35 pips * 1.5 = 52.5) I personally do not like, such as the risk management system. Try to follow the rules of classical capital management when profits may be larger than the risk that may occur. Although some people say that this project is profitable for me. I am a chance ' breathe ' S and R are level after the gap so I'm looking for models to price near them. It helped me to improve the ratio of SL and TP

 

  1. Our goal is by 3-4 high/low high or low points of last Friday of candles.

An example of a Forex trading spaces

We have a real gap on this chart so we open a command does not start, but after that, the price sometimes, ' breathing ' should wait for the appearance of R and S level and form PA I often set my stop loss slightly higher extremes in local.

Gap trading examples.

The goal of the week what is the Forex trading strategy, which we will set profit use.

We will do it. On Friday, closing at a level, but a bit. Above the high and low of the last candle closes on Friday. In this case, was a gap and we set up the order of use of high gain near the candle last Friday.

When we set our time gains We should set a stop-loss order you. Notice, prices can move, delete, and dust cannot be predicted before they close the gap, why not Forex gap occurs, a lot of traders who want to profit. And manufacturers in the market, trying to kick out the brains of such. Therefore, we should pay attention to while our stop loss order is not. , Was sidelined and recorded profits of the system.

TakeProfit

Therefore, the gap in our Forex trading goal is roughly dice. SL 125 = 60 points

You see. The price held around levels 1.20000 Engulfing bullish PA my favorite pattern one has to appear on the chart. Closing the gap in the end, what about the time closed the gap quickly sometimes. But in some cases, closing their accounts can take a day. Don't worry. If it doesn't start off, which is normal for a space week. Forex trading strategies.

One more example of the gap in the week. Forex trading strategies:

Let's see if our SL is equal to TP * 1.5 spaces while so we are selling pairs of spaces equal to 40 points, so we will look at it as a real one. Then we wait for the candle first M30

We can notice that the price has moved in our direction. Although the quote be moved with us sometimes. But we don't do anything in the first ten minutes, but wait, after turning off the first candle, we can turn the proposal.

In this example, the goal is to bring the closing price of last Friday near the candle. Why don't we put them directly at the level of the closing. Yet, because the market is intended to close the gap in the truth. Lol, but not force level it closed Friday. Sometimes the price is not up to that level, and the reverse. We can expand opportunity for winning this way.

The closing price.

Try to set the stop loss and our TP 35 pips, SL will: 52.5 +. Two dots = 54-55 points.

TP and SL

It is easy, but the profit gap a week Forex trading strategies.

The main disadvantages of the trading week. Forex is the fact that the actual gap occurs less frequently in the market. Forex, but when they do it will be a good opportunity to get the money.

Special for you, dear readers.

Some lifehacks for weekends. Forex trading strategy gap:

Signal strength is the situation when the gap started moving in the opposite direction from. SMA:

    • There is a gap up + down = SMA as strong signal for short position open if the gap until the resistance level. The price may fall and you will have the opportunity for open management short. And get the highest profit.

The gap up.

    • Gap down + SMA = good signal, too. Indicates whether it is an appropriate time for the open State. Long after the price reaches the level of support. The probability of moving in the direction of this highly.

Gap down.

The price does not always close the gap. Sometimes, you can open the connection gap. This usually happens during important news, such as parliamentary elections that occurred in the United Kingdom soon. , And then party conservatism has no majority in the Assembly. Value of pound is under pressure.

Pound is under pressure.

But remember the signal tells us about the probability They do not guarantee any date and there is no guarantee that the price will no longer functions as it does after the previous weekend. Still, the gap a week Forex trading strategies. If we use it properly.

1 Comment

  1. tried this way , earned 30 pips
    so pitty that it was just on my demo 🙁
    but it works thank you so much

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