Sunday, October 10, 2010
This time I will discuss about how to exploit the gap that usually happens when the market opened in the early weeks Smiley
As we know, the forex market is closed over the weekend, exactly closed on Saturday at 04.00 pm and reopen on Monday at 04.00 pm.
On the other hand, the factors that affect a country's currency value, such as political economic conditions in that country, still continues to run, because in general, human activity is still running. That is why, very likely to occur in the open market beginning early in the week, a gap or a price jump, either up or down and the final price when the market closes.
The gap is often the case in earlier this week made many traders avoid menghold positions remain open during weekends when the market closes. Makes sense really, because when the market closed we will not be able to do anything against our positions are still open. In fact all possibilities can happen. Carried to its extreme, political and economic conditions of a State may change drastically on weekends, which makes the value of currency can be changed drastically without we could do nothing because the market is closed.
This gap can indeed be a nightmare for traders who tersabet SL position when the market opened at the beginning of the week, but can also be an opportunity for us who want to take advantage of the existence of these gaps.
Utilizing the gap at the beginning of the week, the principle is similar to the movement menfaatkan news release as quickly as we discussed earlier.
Let us examine the following chart:
If the price on Saturday at 3:58 is 1.5620, then we put a stop 10pips buy pending order on it, which is at 1.5630 with TP about 20 pips at 1.5650. Put also pending order sell stop about 10 pips below the price before the market closed, that is at 1.5610 with TP about 20 pips at 1.5590.
Shortly after the market opened on Monday at 04.00 pm, check the position of pending orders. Cancel pending order that is untouched, in the example above is pending order sell it. Thus we already get about 20 pips when the market opened Wink
The weakness of this method is, we must "sacrifice" to wake up shortly before the market close and open shortly after the market Cheesy
Ok, the above is just an example if we want to take advantage of gaps that occur at the beginning of the week. Options entirely in your hands, whether to avoid gap by closing all positions at the weekend, or just use the Gap has explicitly set the position just before market close
As we know, the forex market is closed over the weekend, exactly closed on Saturday at 04.00 pm and reopen on Monday at 04.00 pm.
On the other hand, the factors that affect a country's currency value, such as political economic conditions in that country, still continues to run, because in general, human activity is still running. That is why, very likely to occur in the open market beginning early in the week, a gap or a price jump, either up or down and the final price when the market closes.
The gap is often the case in earlier this week made many traders avoid menghold positions remain open during weekends when the market closes. Makes sense really, because when the market closed we will not be able to do anything against our positions are still open. In fact all possibilities can happen. Carried to its extreme, political and economic conditions of a State may change drastically on weekends, which makes the value of currency can be changed drastically without we could do nothing because the market is closed.
This gap can indeed be a nightmare for traders who tersabet SL position when the market opened at the beginning of the week, but can also be an opportunity for us who want to take advantage of the existence of these gaps.
Utilizing the gap at the beginning of the week, the principle is similar to the movement menfaatkan news release as quickly as we discussed earlier.
Let us examine the following chart:
If the price on Saturday at 3:58 is 1.5620, then we put a stop 10pips buy pending order on it, which is at 1.5630 with TP about 20 pips at 1.5650. Put also pending order sell stop about 10 pips below the price before the market closed, that is at 1.5610 with TP about 20 pips at 1.5590.
Shortly after the market opened on Monday at 04.00 pm, check the position of pending orders. Cancel pending order that is untouched, in the example above is pending order sell it. Thus we already get about 20 pips when the market opened Wink
The weakness of this method is, we must "sacrifice" to wake up shortly before the market close and open shortly after the market Cheesy
Ok, the above is just an example if we want to take advantage of gaps that occur at the beginning of the week. Options entirely in your hands, whether to avoid gap by closing all positions at the weekend, or just use the Gap has explicitly set the position just before market close
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