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…