Weekend-gap Strategy (with Daily Currency Strength)
Weekend-gap Strategy
A great way to kick start the week of trading is to trade the weekend-gaps. When the market opens, look for price gaps which have currencies that are in opposite strength to each other. Example: AUD is -4 and USD is +6, If the market gaps up on AUD/USD, then this is a great opportunity to sell into the gap. There are 2 facts that you have to take into consideration when trading gaps. One is that gaps will always close, second is that the market can still go against the direction of the gap for several hundreds of pips before closing the gap. So its important to know what currencies are strong respective weak. This way you will know if the market will close the gap in the coming hours or not and you can start off your week of trading with a nice profit.
How to determine the strength of a currency:
Dec 8: Weekend-gap Setup:
A great way to kick start the week of trading is to trade the weekend-gaps. When the market opens, look for price gaps which have currencies that are in opposite strength to each other. Example: AUD is -4 and USD is +6, If the market gaps up on AUD/USD, then this is a great opportunity to sell into the gap. There are 2 facts that you have to take into consideration when trading gaps. One is that gaps will always close, second is that the market can still go against the direction of the gap for several hundreds of pips before closing the gap. So its important to know what currencies are strong respective weak. This way you will know if the market will close the gap in the coming hours or not and you can start off your week of trading with a nice profit.
How to determine the strength of a currency:
