Author Topic: How to Trade Gaps  (Read 1167 times)

Offline droper

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How to Trade Gaps
« on: April 06, 2013, 02:08:16 PM »
A gap occurs on a chart when the closing of a Japanese candlestick is higher or lower than the opening price of the following candlestick. The Gaps may be bullish if the closing price of the candlestick is less during opening of the following candle; or bear if the closing price of the candlestick is higher at the closing of the next candle.

On Forex trading, as traded, not many gaps appear on charts. On Forex, the gaps are more frequent on weekends as the foreign exchange trading market is closed to trading for individuals from Friday evening to Sunday evening, but that it remains open in interbank. On the stock exchange, the gaps are frequent daily because market closes every day to re - open the next day. But the gaps can also appear in full day, during powerful movement of the market, with high volatility. On FX trading, it is during the new important economic that one can see the gaps in full open meeting more.

For trader on the gaps, two trading strategies are possible:

-The gap provides a signal: signal to buy for a bullish gap and sell for a bearish gap signal. The Trader may consider entering Long on a bullish gap or short on a bearish gap, with order for continuation of the movement in the same sense that the gap.
« Last Edit: January 01, 1970, 01:00:00 AM by Guest »
Pour des sensations plus fortes, je suggère AUD et/ou NZD avec en face: USD, JPY, EUR, how to start forex trading.

Offline boitecom

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Re: How to Trade Gaps
« Reply #1 on: April 12, 2013, 10:46:09 AM »
Quote from: "droper"
A gap occurs on a chart when the closing of a Japanese candlestick is higher or lower than the opening price of the following candlestick. The Gaps may be bullish if the closing price of the candlestick is less during opening of the following candle; or bear if the closing price of the candlestick is higher at the closing of the next candle.

On Forex trading, as traded, not many gaps appear on charts. On Forex, the gaps are more frequent on weekends as the foreign exchange trading market is closed to trading for individuals from Friday evening to Sunday evening, but that it remains open in interbank. On the stock exchange, the gaps are frequent daily because market closes every day to re - open the next day. But the gaps can also appear in full day, during powerful movement of the market, with high volatility. On FX trading, it is during the new important economic that one can see the gaps in full open meeting more.

For trader on the gaps, two trading strategies are possible:

-The gap provides a signal: signal to buy for a bullish gap and sell for a bearish gap signal. The Trader may consider entering Long on a bullish gap or short on a bearish gap, with order for continuation of the movement in the same sense that the gap.
HI droper  :D,
there is a strong likelihood that differences filler. the problem is the setting of a judgment to negotiate a reasonable gap. I share almost every week gaps often rr is not very good. There is one broker I know that power open price on weekends. You can see and understand the gaps before "open market" if you do not mind some high spreads when you place the trade.
« Last Edit: January 01, 1970, 01:00:00 AM by Guest »
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Offline droper

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Re: How to Trade Gaps
« Reply #2 on: April 15, 2013, 12:41:11 PM »
Quote from: "boitecom"
Quote from: "droper"
A gap occurs on a chart when the closing of a Japanese candlestick is higher or lower than the opening price of the following candlestick. The Gaps may be bullish if the closing price of the candlestick is less during opening of the following candle; or bear if the closing price of the candlestick is higher at the closing of the next candle.

On Forex trading, as traded, not many gaps appear on charts. On Forex, the gaps are more frequent on weekends as the foreign exchange trading market is closed to trading for individuals from Friday evening to Sunday evening, but that it remains open in interbank. On the stock exchange, the gaps are frequent daily because market closes every day to re - open the next day. But the gaps can also appear in full day, during powerful movement of the market, with high volatility. On FX trading, it is during the new important economic that one can see the gaps in full open meeting more.

For trader on the gaps, two trading strategies are possible:

-The gap provides a signal: signal to buy for a bullish gap and sell for a bearish gap signal. The Trader may consider entering Long on a bullish gap or short on a bearish gap, with order for continuation of the movement in the same sense that the gap.
HI droper  :D,
there is a strong likelihood that differences filler. the problem is the setting of a judgment to negotiate a reasonable gap. I share almost every week gaps often rr is not very good. There is one broker I know that power open price on weekends. You can see and understand the gaps before "open market" if you do not mind some high spreads when you place the trade.

Thank you if you use gann angle & gann wheel for tech analysis,it wii lhelp you to uderstand why gap up/dn happens in the mrkt,particullar in the A grp
« Last Edit: January 01, 1970, 01:00:00 AM by Guest »
Pour des sensations plus fortes, je suggère AUD et/ou NZD avec en face: USD, JPY, EUR, how to start forex trading.