Who dares fade this GBPUSD gap?

[leovirgo]

There are some threads that teach noobs about how to exploit gaps that form over Friday close and Sunday night open. Here is an opportunity to prove it live.

I'm a total newbie in terms of gap filling and would like to see someone making live calls over the gap play.

1. Is this gap fadable?
2. when to fade it?
3. when to exit?

Any takers? 80pips quietly waiting for the prince charming

 

[arabianights]

You know why it gapped, right?

 

[leovirgo]

You know why it gapped, right?

I can't find it in gap fading manuals :cheesy:

 

[Waterfield]

It gapped because your forex broker closed over the weekend. Forex is still traded over the weekend however most brokers don't supply this service, hence different opening times for different platforms.

Is this correct Dave?

Phil.

 

[GammaJammer]

Correct. Wholesale markets, from which your price is derived, and upon which it is almost wholly dependant, shut around 5pm ET on Fridays (i.e. 10pm UK Time) give or take a bit of fannying around on the West coast. They re-open once NZ come in on their monday morning, which is Sunday early evening in London.

Here's the bloomberg chart for the same period (times are BST on here)

GJ

 

[xtf]

It just jumped up from 1.5220 to 1.5240. The short term bottom could be 1.5209... on the other hand I suppose stops are accumulating there and will be shortly taken out!

 

[leovirgo]

so far, discussions went on to why gaps happen in general. very informative for a newbie.

however, I was asking if anybody would fade 'this' particular gap as soon as it was formed, by using usual gap fading methods. last monday, GU,EU gapped up after euro bailout over the weekend and this time gapped down after GS subprime fraud charge. is there any difference? [some even compared last week's euro gap to a naked woman- drunk and sleeping..]

my conclusion is that, there was no takers who would demonstrate gap plays with live calls.

 

[trader_dante]

There are some threads that teach noobs about how to exploit gaps that form over Friday close and Sunday night open. Here is an opportunity to prove it live.

I'm a total newbie in terms of gap filling and would like to see someone making live calls over the gap play.

1. Is this gap fadable?
2. when to fade it?
3. when to exit?

Any takers? 80pips quietly waiting for the prince charming

Why would someone want to make a live call? The instructions are all in the manual

50% of it has already been given. And you'll probably be able to get the other 50% if you watch and wait.

 

[samuelhogg]

An article that some may find useful.
http://www.investopedia.com/articles/trading/05/playinggaps.asp

 

[wackypete2]

The last time I tried to fade a weekend the only thing I got out of it was a gap in my trading account. Fading weekend gaps in forex not for me!
Fading overnight equities is different though, although, I must admit it's been a while since I played stocks that way.

Peter