Forex Gap Trading Strategies
What’s Forex Gap Trading?
Gap trading is not a new forex trading strategy. It’s been used in all investment markets for a very long time. It’s really easy To learn this Forex trading technique. Gap trading in an attempt to take advantage of the difference, or “gap,” in price between the close of the previous day with the open of the following day. Gapping up: the open is above the previous day’s close. Gapping down: the open price is below the previous day’s close price. When the open is at the same price level, then there was no gap.
How can you trade gaps in the Forex market?
Ignore the 24-hours time frame associated with Forex trading, and set up an opening and closing time to create an artificial market, you can provide yourself with an open high low close data range. Based on that data range, you would be able to trade gaps. Another Forex trading strategy is basically to ignore trading on Saturday and Sunday, when volume is thin and most of the world is not working. Under this scenario, you establish a closing time on Friday and an opening time on Monday. Based on the gap, you take the appropriate position.
Forex Gap Trading Strategies works more often than not, a simple process that can generate great profits.
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