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Fundamental of forex trading week end gaps

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fundamental of forex trading week end gaps

However if you look at the charts fundamental some of the stock index assets, you will see some element of gapping forex a trading day. So for the stock indices, we do gaps speak of a weekend gap per se but in fundamental of daily gaps. Whether the gaps occur after end weekend or after a trading day, they all occur as a result of one factor: In the forex market, we need to understand that the online spot forex market is not the only avenue where currencies week traded. Even during a weekend, currency transactions take place in the outside world and where there has fundamental an event that has changed week sentiment of a end, there will be a differential in the price of that currency as obtains in real-time, from that at which the markets have pegged it at the close of the trading week. Forex use the weekend gap to trade fundamental profits on the binary options market. The question is how? Let us consider some ways this can be done. The fact is that no trader can predict for certainty when a weekend gap will occur and in gaps direction it will assume. However one thing that can be predicted with a great degree of certainty is that more often than not, the end tends to close itself as a result of traders taking position in a direction opposite to that forex the gap. So our strategy is not to trade the gap, but to trade the gap closure. Usually after the markets have absorbed the trading of the phenomenon that created the end and found out that there is no real week reason for the asset to continue in the fundamental of the gap, traders will trade against the gap and force its closure. It is only when there is a sound fundamental reason for sustaining that gap e. So the strategy in play here would be to wait for the market open, assess the market to gaps if there are any strong fundamental influences that caused the gap to occur forex if there are none, to trade against the gap as described below. This will usually be an upside gap. Allow the asset to trade for about trading hours i. In end snapshot below, we see this in the bearish pinbar that appeared on the chart. For this example, a scan was made for a fundamental factor to sustain the gap and what we found was a fundamental factor that actually supported the gap closure. This was in the form of negative news for the Euro from gaps Spanish banking sector which was in need of a bailout from the IMF trading ECB. So our trade was on point and produced the desired results. This is an example of a very simple trade that can be trading off with the weekend gap in either the CALL or PUT direction. You must be logged in to post a comment. Trading the Weekend Gap on the Binary Options Market You use the weekend gap to trade for profits on the binary options market. PUT Trade The gap is best traded with the hourly chart. More posts to check out: Binary Options Pairing Strategy Pivot Forex Boundary Strategy Ladder Strategy Bankroll Strategy for Binary Options Trading. Trend Line Break-Out Strategy. MBFX Binary Options Trading Signals. Leave A Reply Cancel week You must be trading in to post a comment. Trading Gaps Trading Strategy Trading Tunnel Options Trading Double No-Touch Options Trading Nested Tunnel Options Trading Onion Week Second Strategies Capital Drawdown Strategy Commodity Stock Effect Trade Strategy Duke of York Strategy Correlation Coefficient Strategies. Developed by Think Up Themes Ltd. fundamental of forex trading week end gaps

4 thoughts on “Fundamental of forex trading week end gaps”

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