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Gap

Btc -Gap Trading StrategyGap Trading Strategy Rules-How To Trade Gaps 1. You need to choose a currency pair with a high level of volatility. btcusd is a good example but any currency pair that forms a weekend gap should also be good. 2. When the trading day starts on Monday, look to see if there is a gab. Make sure that the gap is at least 5 times the average spread for the pair. For example, if the spread is 3 pips, make sure that the gap is  15 pips or above. Anything less would be considered irreverent 3. If you see that Monday’s candlestick open is below the Friday’s close then the  forex gap is negative and you should open a Long position at market price. 4. If you see Monday’s open is above the Friday’s close the forex gap is positive and you should open a Short position at market price. 5. You can apply two stop loss options: (a) apply no stop loss at all INITIALLY but as price moves in favor by say 50 pips, place stop loss above high or low of the Monday Candlestick when it closes (b) Place stop loss above/below nearest swing high/swing low the you can find in 1hr timeframe or 4 hour timeframe. 6. Just 5 minutes before the market closes on Saturday, (e.g., 5 minutes before the end) you need to close your trade.
CME:BTC1!Education
by IgorPorokh
1
How to trade a gap? (strategy, short term 1 minute chart)1 we have to analyse what kind of gap was it. ( runaway, breakaway, exhaustion) 2 current gap on a 1 minute chart is a Breakaway, as it has broken through a short term trend line, 3 when we have a breakaway gap, the gap close is less likely, so we're waiting for a consolidation that will nearly fill the gap, in our sample it's 50% Fibonacci area. 4. we're placing a limit orfer to catch a better price 5. in case if the order has not been hit, we're waiting for earlier confirmation of our signal to manually enter a trade. 6. in case if the gap trade has been missed, we can use a gap as a compass for a future trades (short term), for example, current potential target can be a stop order trade, but I will explain it later.
Education
by Marenno
1