Forex Trading Gaps
Gaps can occur in both the upward and downward direction. unlike the stock markets, the forex market operates 24 hours a day, 5 days a week. it is usually during the weekend that such gaps can be seen. when the market opens on monday, it is seen that prices have jumped up or down, from the closing price on friday. Gaps can be especially exciting in the forex market, where it is not uncommon for a report to generate so much buzz that it widens the bid and ask spread to a point where a significant gap can be seen. similarly, a stock breaking a new high in the current session may open higher in the next session, thus gapping up for technical reasons. Gaps are spaces on a chart that emerge when the price of the financial instrument significantly changes with little or no trading in-between. gaps occur unexpectedly as the perceived value of the. Thus, it is recommended to avoid trading gaps within a range and without additional confluence factors. the other 3 types of gaps usually provide...