Dear Valuable Reader,

From time to time assets make big, unexpected movements which cause price jumps. Such jumps leave gaps in stock price charts. They usually take place after trading pauses, when trades are stopped for a night, weekend or holidays. Sometimes such gaps are the result of some breaking news also. So, when supply exceeds demand, the price will decrease and often it will drop to that closing price of the previous night, and the gap made by it will be closed.You may now utilize it for your successful trading. In this instance you should seek for overnight, weekend, holiday or news gaps in Forex. As soon as you find one, you are able to forecast the asset price movement direction and convert your knowledge into profit.

Gap trading can be used in binary options of several types, lets have 2 recent examples on EURUSD to analyze for a while:

1- first was in date Monday 30th January , at Market opening in 22:00pm(Sunday) .



Market recent close was ( 1.0696 )
Market opened on price (1.0722 )
so gap distance is (26 pips-up)
in 1st hour gap shorted to (22 pips-up).
Price went under the line of starting price at (7:00am)
then gap totally closed in (9:00am)
So time spent to win if we opened a binary by the 1st hour is (9-11 hours).



2-2nd example was in date Monday 5th December , at Market opening on 22:00(Sunday)



Market recent close was ( 1.0663 )
Market opened on price (1.0628 )
so gap distance is (35 pips-down)
in 1st hour gap increased to (130 pips-down).
Price went under the line of starting price at (8:00am)
then gap totally closed in (11:00am)
So time spent to win if we opened a binary by the 1st hour is (10-13 hours)

By these, you can select option where you can buy in the direction opposite to the gap. Timing is the key to implement this kind of trade successfully. Unfortunately, the time cannot be found anywhere, it can be only learnt from your own experience.

When you have to do with a big gap, you may utilize a touch option. Having analyzed the gap and the preceding it price movement, you may even utilise one of the two options: High/Low, if the gap is large enough for one of the options to expire.

Remember, Yhis type of such option strategy should expire less than in a day. This binary options trading strategy is not able to forecast something further than a day. so I recommend you to try this strategy with a demo account and only after that invest real money.

I hope this analysis carry a useful ideas for you.. with my Best Regards!
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