hermes Posted June 4, 2012 Report Share Posted June 4, 2012 Getting idea on FX forum I Google the Internet for Gaps strategies and put together a PDF which will be very useful for those who seek the truth. http://depositfiles.com/files/7unt4mmry If anybody has more Gaps indicators or constructive ideas on Gaps please, feel free to express yourself. Enjoy Hermes joy22, polux2, chemstar and 8 others 11 Quote Link to comment Share on other sites More sharing options...
hermes Posted June 5, 2012 Author Report Share Posted June 5, 2012 (edited) Gaps, especially down are very sound strategy. The best is probably no SL, no TP strategy: e.g. after gap down open a sell and close it before market close on evening, it doesn't matter what result. You will be more right then sorry. Best days are Tuesday, Wednesday and Thursday. Monday worst, Friday good only for down gaps! If gap is more than 50 pips forget it! Fill gap with 50% TP and twice SL. E,g, gap 38 pips: TP 19 pips and SL 38x2=76 pips. Best results on 5M to 30M charts. Gaps are VACUUMS which will eventually fill up. Good with support of RSI indicator. Best, enter on open of candle. There is a software for gap trading but only for stocks. Would be good to have one also for Forex. Cheers Hermes Edited June 5, 2012 by hermes joy22 and dukeaugustus 2 Quote Link to comment Share on other sites More sharing options...
dukeaugustus Posted June 5, 2012 Report Share Posted June 5, 2012 (edited) . . . e.g. after gap down open a sell and close it before market close on evening, it doesn't matter what result. You will be more right then sorry. . . . Thanks Hermes for your research and nice share. I have not studied or traded gap trades before. But I was under the impression that after a gap "down", you would expect the price to fill the gap, so that means expect the price to move "up"; and in that case shouldn't I want to "buy" instead of "sell"? I am probably missing something obvious in what you just taught. Edited June 5, 2012 by dukeaugustus Quote Link to comment Share on other sites More sharing options...
hermes Posted June 5, 2012 Author Report Share Posted June 5, 2012 (edited) No you are right! Down gap means that you have to buy because the gap will fill up (vacuum). The gaps down are more successful to trade like the gaps up (sell to fill up the gap)) because of trading fear. Irrational fear sales (bad news, later not so bad and consolidation) make drop the market faster than get rid of long position before reverse. Some traders trade only gaps down (buy) because more rewarding strategy. Hermes Edited June 5, 2012 by hermes dukeaugustus 1 Quote Link to comment Share on other sites More sharing options...
hermes Posted June 11, 2012 Author Report Share Posted June 11, 2012 Sunday gap 118 pips filled later in abundance! That's how you trade gaps. http://depositfiles.com/files/4hbrlqz10 Hermes learningfx 1 Quote Link to comment Share on other sites More sharing options...
Eldiablo54 Posted June 11, 2012 Report Share Posted June 11, 2012 Yeah I trade gaps from time to time as an extra strategy. This is successfull most of the time. Especially eurusd. But 2 weeks ago I think it was, the gap never closed. It just kept going down. So be carefull. Hermes in that case at what point do u climb out. Any suggestions Btw I also took the one this morning. Knew it was gonna be a sweet ride back down. Quote Link to comment Share on other sites More sharing options...
hermes Posted June 12, 2012 Author Report Share Posted June 12, 2012 Don't trade too big gaps and fill just half of it - it is enough. When we want too much we lose even the little we have. When the gap is 80 pips take only 40pips and run. Even larger gaps will fill sometimes but you have to wait longer. Patience is recommended at trading, anyway. Small TFs like 5-15-30M are recommended. Hermes Quote Link to comment Share on other sites More sharing options...
hellboy1713006415 Posted June 13, 2012 Report Share Posted June 13, 2012 Gaps can be considered as a big price bar for practical purposes.:D Quote Link to comment Share on other sites More sharing options...
hankt80 Posted June 13, 2012 Report Share Posted June 13, 2012 gaps do NOT always close so be very carefull, use SL, the TF doesnt matter at all. Quote Link to comment Share on other sites More sharing options...
hermes Posted June 13, 2012 Author Report Share Posted June 13, 2012 For higher TFs you have to wait longer because it takes a day or week or month! Use always a SL is a good idea. That is also true that if the currency is in steady decline the gap will not fill up. Therefore, trade only major (6) pairs gaps, not a second class. Hermes Quote Link to comment Share on other sites More sharing options...
K12 Posted June 14, 2012 Report Share Posted June 14, 2012 Gaps can be considered as a big price bar for practical purposes.:D Anybody has Big Rice Bar, Sorry Big Price Bar EA .... LOL Quote Link to comment Share on other sites More sharing options...
dukeaugustus Posted June 16, 2012 Report Share Posted June 16, 2012 With the Greek election this weekend, and just about every forex-related email I have been getting is talking about expected volatility, this is likely another Monday with some impressive gaps for us to play with?! I am very tempted to put on a straddle trade before the election, but I am worried about my broker either not filling my order, or taking out my stop with excessive sized spread (like 20 plus pips spread, which I have seen on oanda during news events). My broker oanda even sent out an unusual email telling us they will suspend order taking over the late Sunday time period, (in order to *cough* protect us traders from ourselves). Ha. Just curious, is anyone else also considering a weekend straddle trade? If so, any suggestion on how are you doing it? Quote Link to comment Share on other sites More sharing options...
hermes Posted June 17, 2012 Author Report Share Posted June 17, 2012 There is a Sunday gap up 44 pips on EURUSD will see if it falls down? They predict market crash on June 30, 2012 we will see if it is true. Be careful. Best would be not to trade until September because holiday's months are anyway slow. Hermes dukeaugustus 1 Quote Link to comment Share on other sites More sharing options...
hermes Posted June 18, 2012 Author Report Share Posted June 18, 2012 http://depositfiles.com/files/29l0lizfw For sure Sunday gap filled up and in excess! Hermes Sesshoumaru 1 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.