Forex Zone | Forex Forum

why does GAP occur in the market?

Discussion started on General Forex Discussion

  • why does GAP occur in the market? in General Forex Discussion_index
  • Posts: 319
  • Points: 0
  • Likes Received: 49
  • Reputation: +1/-0
why does GAP occur in the market? in General Forex Discussion_question
we often see in a certain fair that every market opening at Monday there are some fair dealing with GAP, GAP itself according to the understanding is a trading phenomenon that appears when there is empty space on the Candlestick chart between the closing price of one candle with the opening price ( Opening) the next candle.
what often causes GAP?
Is there a strategy that can be used to profit from GAP?


Linkback: https://www.forex.zone/general-forex-discussion/1/why-does-gap-occur-in-the-market/1573/
#1 - February 16, 2019, 03:49:32 AM

  • Posts: 45
  • Points: 0
  • Likes Received: 18
  • Reputation: +0/-0
why does GAP occur in the market? in General Forex Discussion_xx
we often see in a certain fair that every market opening at Monday there are some fair dealing with GAP, GAP itself according to the understanding is a trading phenomenon that appears when there is empty space on the Candlestick chart between the closing price of one candle with the opening price ( Opening) the next candle.
what often causes GAP?
Is there a strategy that can be used to profit from GAP?
Gap occurs when there is extreme sentiment in the market, so the party that is bullish or bearish towards a currency pair immediately dominates the market. Gap occurs when there are important news that have a big impact (hight impact). In addition, Gap also appears at the beginning of the week, if there are quite large incidents at the weekend after the market closure on Friday, so the compact market takes action in one direction during the market opening on Monday.

Therefore, we fundamentally take advantage of the big news to take advantage of the existence of GAP, without leaving no technical analysis.
#2 - February 16, 2019, 04:32:48 AM

  • why does GAP occur in the market? in General Forex Discussion_index
  • Posts: 1047
  • Points: 5672
  • Likes Received: 100
  • Reputation: +4/-0
why does GAP occur in the market? in General Forex Discussion_xx
Gap occurs because there is a gap between the real market that actually runs 24 hours with the broker that we follow. Actually, the market is always running and the connecting price connects, except that the holiday bro does not describe the price on the chart, so it seems like there is a gap.

Many traders use the 2-way trap strategy to take advantage of the market opening gap at the beginning of the week.
#3 - February 16, 2019, 06:35:16 AM

  • Posts: 40
  • Points: 0
  • Likes Received: 4
  • Reputation: +0/-0
why does GAP occur in the market? in General Forex Discussion_xx
Gap occurs because there is a gap between the real market that actually runs 24 hours with the broker that we follow. Actually, the market is always running and the connecting price connects, except that the holiday bro does not describe the price on the chart, so it seems like there is a gap.

Many traders use the 2-way trap strategy to take advantage of the market opening gap at the beginning of the week.
I think GAP occurs because of the fundamentals that occur on Saturdays or Sundays but are not readable by the metatrader where the server is on holiday that day. so that when the market opens on Monday, there is a difference in prices when the market closes and when the market opens on Monday.
#4 - February 16, 2019, 07:46:39 AM

  • why does GAP occur in the market? in General Forex Discussion_index
  • Posts: 1047
  • Points: 5672
  • Likes Received: 100
  • Reputation: +4/-0
why does GAP occur in the market? in General Forex Discussion_xx
I think GAP occurs because of the fundamentals that occur on Saturdays or Sundays but are not readable by the metatrader where the server is on holiday that day. so that when the market opens on Monday, there is a difference in prices when the market closes and when the market opens on Monday.
yes it is true sir, the gap is only a candle gap that is not indicated by the broker, if we look at the real forex market as in some providers the value of the real currency at any time then there will not be a gap.
#5 - February 16, 2019, 08:01:12 AM

  • why does GAP occur in the market? in General Forex Discussion_index
  • Posts: 126
  • Points: 0
  • Likes Received: 12
  • Reputation: +0/-0
why does GAP occur in the market? in General Forex Discussion_xx
Gap occurs when there is extreme sentiment in the market, so the party that is bullish or bearish towards a currency pair immediately dominates the market. Gap occurs when there are important news that have a big impact (hight impact). In addition, Gap also appears at the beginning of the week, if there are quite large incidents at the weekend after the market closure on Friday, so the compact market takes action in one direction during the market opening on Monday.

Therefore, we fundamentally take advantage of the big news to take advantage of the existence of GAP, without leaving no technical analysis.
Gap is a condition that arises when there is a large difference between the market closing price of the previous day and the market opening price the next day. In general, the cause of a gap in forex is formed due to the emergence of extreme sentiments on the market, so that buyers or sellers of a currency pair dominate the market in an instant. While this extreme sentiment can arise due to the existence of fundamental news that is so important, or when the market opens at the beginning of the week.

In general, the gap in forex is not always traded by opening a position opposite to the direction of the gap. There are still several other ways and trading systems that can be applied by using a gap in trading. For example, by using volume, because when a price comes to a large volume of support and resistance levels, the signals that occur around the area can be more valid and steady. Or it could be by utilizing the properties of Common Gap which always appears at the end of the day or the beginning of the week. This strategy does not emphasize whether the gap is in line with the trend or not. This strategy is also taken from the approach that most of the gaps that occur in the forex market must be closed. Even so, it needs to be stressed that the gap that occurs will not always be closed at that time, maybe it can only be closed next Sunday, next month or maybe even next year.
#6 - February 16, 2019, 10:04:06 AM

  • why does GAP occur in the market? in General Forex Discussion_index
  • Posts: 108
  • Points: 280
  • Likes Received: 17
  • Reputation: +1/-0
why does GAP occur in the market? in General Forex Discussion_xx
we often see in a certain fair that every market opening at Monday there are some fair dealing with GAP, GAP itself according to the understanding is a trading phenomenon that appears when there is empty space on the Candlestick chart between the closing price of one candle with the opening price ( Opening) the next candle.
what often causes GAP?
Is there a strategy that can be used to profit from GAP?
the cause of the GAP is that the demand is greater than the price at the closing of the market, so the price jump that we usually call is the gap

for the gap problem strategy I myself don't understand, it's just that for GAP in the GU pair it is usually closed a little faster and after the price is closed from the gap then the price moves according to the ongoing trend
#7 - February 19, 2019, 09:33:03 AM

  • why does GAP occur in the market? in General Forex Discussion_index
  • Posts: 345
  • Points: 0
  • Likes Received: 76
  • Reputation: +1/-0
why does GAP occur in the market? in General Forex Discussion_xx
we often see in a certain fair that every market opening at Monday there are some fair dealing with GAP, GAP itself according to the understanding is a trading phenomenon that appears when there is empty space on the Candlestick chart between the closing price of one candle with the opening price ( Opening) the next candle.
what often causes GAP?
Is there a strategy that can be used to profit from GAP?
its because market close in friday and open in monday, while foreign exchange open from monday to sunday i think, and trade always occur in that weekend and as for us we cant, but if you hold your position from friday to monday, maybe you can get profit or loss from it, and get swap from some broker
#8 - February 20, 2019, 07:57:54 AM

  • Posts: 15
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
why does GAP occur in the market? in General Forex Discussion_xx
which causes a gap is because on Saturdays and Sundays there are actually markets that are running
#9 - February 21, 2019, 07:06:07 AM

  • Posts: 279
  • Points: 0
  • Likes Received: 79
  • Reputation: +1/-0
why does GAP occur in the market? in General Forex Discussion_xx
we often see in a certain fair that every market opening at Monday there are some fair dealing with GAP, GAP itself according to the understanding is a trading phenomenon that appears when there is empty space on the Candlestick chart between the closing price of one candle with the opening price ( Opening) the next candle.
what often causes GAP?
Is there a strategy that can be used to profit from GAP?
of course there is. I usually move GAP far enough at the start of the market opening to always use a pending order, so we will get a price that is quite good.
and when I have a decent profit, I usually sell it directly.

the first market is fun if we know how to get it.
#10 - February 21, 2019, 12:57:27 PM

  • Posts: 139
  • Points: 0
  • Likes Received: 6
  • Reputation: +0/-0
why does GAP occur in the market? in General Forex Discussion_xx
the gap can occur because of a large fundamental. but in general, it often happens at the opening of the market on Monday which I know usually occurs because of an incident at the end of the week after the big fundamentals have occurred depending on the fundamental effect that can make an up gap or down gap. then if you want to get profit from the gap then you have to follow the results of the fundamentals before the market closes
#11 - February 21, 2019, 01:31:16 PM

  • Posts: 20
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
why does GAP occur in the market? in General Forex Discussion_xx
GAP will not always be closed, so you should be careful
#12 - October 11, 2019, 01:35:08 AM

  • Posts: 10
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
why does GAP occur in the market? in General Forex Discussion_xx
GAP is just a picture of an unfulfilled market from a broker.
#13 - October 12, 2019, 07:04:07 PM

  • Posts: 10
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
why does GAP occur in the market? in General Forex Discussion_xx
if you want to trade with GAP try on Monday
#14 - October 16, 2019, 10:05:21 AM

  • Posts: 9
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-1
why does GAP occur in the market? in General Forex Discussion_xx
The gap can be utilized by the trap strategy on Friday before the market closure.
#15 - October 16, 2019, 11:25:53 AM

Members:

0 Members and 1 Guest are viewing this topic.


* Share Topic

Share via delicious Share via digg Share via facebook Share via linkedin Share via pinterest Share via reddit Share via stumble Share via tumblr Share via twitter

* Similar Topics

xx
Market update

Started by sophia mason on Fundamental

11 Replies
1693 Views
Last post March 06, 2019, 10:39:50 AM
by Fxortrader
clip
Market profile

Started by Lolek555 on MT4 / MT5 Indicators

0 Replies
358 Views
Last post June 27, 2020, 01:59:19 PM
by Lolek555
xx
What do you usually do when the market is slow?

Started by instaforex on General Forex Discussion

62 Replies
912 Views
Last post May 09, 2021, 02:34:45 PM
by Tahajud
xx
the forex market closes

Started by Van99 on General Forex Discussion

49 Replies
673 Views
Last post January 19, 2021, 12:55:28 PM
by miqbal79