monday morning gappies, page-8

AND a bit more expalnation

(That mod thing was a joke yeah?)

The Gap gives me an orientation to trade to

Gap Up I am short oriented

Gap down I am long oriented.

On the opening of the Forex markets I take a small Position in the opposit direction of the gap (With the expectation that it will close)

I then go away for a bit and let the market settle, with a profit target set on gap close in case as often happens price goes Whhhhoooomp and closes the gap while I am not there.

after about 10 minutes I come back and assess the market from a 1 minute viewpoint..

If the market has moved against my postions I I watch the 1 min MACD closely and as soon as I get a signal of further weakening or srength I add again.

( the USDCHF was a classicx for this this morning as it made a lower low after market open with higher low on 1 min MACD moving averages, Same with EURUSD making higher highs and MACD mavs lower highs)
and I get a bit aggressive adding several contracts on these signals.

I continue to watch the positions and when resistance is hit, I take off half my positions in profit, Put Break even stops on the rest and set profit targets, and walk away again.

I reassess around an hour later, check the possies and

If stopped out I keep an ey on the pair with a fair certainty that it is STILL going to close that gap, but it might be a large timespan thing so better than recieeving the pain (for me) I wait til higher timespans give me clues and work from there

Note it can take a further week vbefore gaps close in such situations, but again it gives me an orientatio which I can work with.

So at this stage:

Partial profits taken on USDCHF long, EURUSD short GBPYUSD short AUDUSD full closed ( on the expectation that our market is going to open strong after Friday's action in Europe and US)

YEN Cross Shorts partial profits but still open as the YEN tends to make sudden gap filling moves closer to our market open (and I presume Japan market open) times.



;)