Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

asiaforexmentor

Forex Trading – Gaps

Recommended Posts

Forex Trading – Gaps

nzdusdgaps.gif

 

Gaps happen when the forex market closes and the forex market have some movements before the market opens.

When the gap forms, What will they happen.

If you had read out previous post about gaps.

It will come as no surprise to you.

Ans: Gaps usually closes. The market will usually close back the gap that is formed.

There are plently of gaps the formed when monday opened, such a wonderful thing.

Got quite a number of pips just by closing the gaps.

These 2 charts are some of the example of the gaps these week, but there were plenty besides these 2.

audusdgaps.gif

 

Ezekiel Chew

Asia's #1 Forex Mentor

Share this post


Link to post
Share on other sites
Gaps happen when the forex market closes and the forex market have some movements before the market opens.

 

Well, since the market is closed, it can't really "have some movements before the market opens." Want to try again, or rephrase?

Share this post


Link to post
Share on other sites
Well, since the market is closed, it can't really "have some movements before the market opens." Want to try again, or rephrase?

 

Gaps can be classified into 4 groups.

 

Breakaway

Exhaustion

Common

Continuation

 

Here is a thorough explanation:

 

Playing The Gap

Share this post


Link to post
Share on other sites
Gaps can be classified into 4 groups.

 

Breakaway

Exhaustion

Common

Continuation

 

Here is a thorough explanation:

 

Playing The Gap

 

Thanks Mystic. All of those are simply subjective ways to interpret the resulting gap, and the article does not explain the mechanics of a gap either. I was referring to the fact that the #1 forex mentor in all of Asia (by his own opinion) didn't quite get it right regarding what a gap is and why it happens. Perhaps it's just semantics to some people, but I think understanding the mechanics of a gap, and what a gap is may really be quite useful. I was giving Asia's best an opportunity to explain it in more detail.

Share this post


Link to post
Share on other sites

Joshdance...

 

I think I know what you mean now. Transactions when the markets are closed.

 

Let's say bank "A" sells 5 Billion euros to bank "B". How does the market record that transaction and open lower on Sunday evening?

 

Beats the heck out of me.

Share this post


Link to post
Share on other sites
Joshdance...

 

I think I know what you mean now. Transactions when the markets are closed.

 

Let's say bank "A" sells 5 Billion euros to bank "B". How does the market record that transaction and open lower on Sunday evening?

 

Beats the heck out of me.

 

Actually, I wasn't referring to that at all... in an OTC market like forex, a transaction like this does not have to be recorded (i.e., be made public), and may forever go unknown to everyone except the two parties involved. In fact, that's the whole thing with OTC; there is no way to know volume or transactions or anything like that.

 

Let's say euro closes (I'm talking generally here, as there is no real price for forex) at 1.2500 on Friday. On Sunday when the first markets open, the opening price is around 1.2550 -- the question is, why? It is no secret of course, and the answer is easily found, but I think asking a provocative question is likely to stimulate more thought than simply blurting out the answer. When people talk about gaps, I think it should be understood why a market opens at a different price than when it closes, when no transactions occur during that period. It's not like the market was bought or sold during that time.

 

Personally I don't concern myself with the notion of gaps too much, and I certainly don't put much statistical weight into whether one is likely to be filled or not, but I'm giving Asia's #1 forex mentor an opportunity to demonstrate his understanding of gaps, since he's #1.

Share this post


Link to post
Share on other sites

I am not sure if until now there are many traders using the Gap on trading forex here. Because we know here, the Gap thing is not easy. If we are profit, then we will make money, but on the other side, we can lose money as much as we expect to make on the gap ..

 

Regards,

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.