Hi traders,
Here we have an interesting trade. A brief of what is a market gap, A market gap is when a currency pair opens at the next trading session with a positive or negative value from the closing value. Usually market opens where it closes previously and carries on. Whenever a gap happens the market rectifies the gap by overlapping (IE for positive gap the market comes down to at least the closing point, for negative gaps the market goes up beyond that closing point). Usually these gap closing takes place within days or weeks. (IF YOU check my previous EURJPY trade I shared you'll notice I did mention about price correction and there was a positive gap which is now been filled and my tp hit, a classic example.)
We have an exception for EURUSD, on the 24th April 2017 market opened with a positive gap (I've marked with a red arrow on the left) but that gap was never filled. As mentioned before, the market cannot have unfilled gaps hence after exactly a year it is coming down to close the gap.
Price has broken the support level already. I'm expecting it to go up to the resistance level from where I'll take short trade and my tp will be just below where the gap has been created.
Let me know your thoughts.
Trade safe and good luck.
Here we have an interesting trade. A brief of what is a market gap, A market gap is when a currency pair opens at the next trading session with a positive or negative value from the closing value. Usually market opens where it closes previously and carries on. Whenever a gap happens the market rectifies the gap by overlapping (IE for positive gap the market comes down to at least the closing point, for negative gaps the market goes up beyond that closing point). Usually these gap closing takes place within days or weeks. (IF YOU check my previous EURJPY trade I shared you'll notice I did mention about price correction and there was a positive gap which is now been filled and my tp hit, a classic example.)
We have an exception for EURUSD, on the 24th April 2017 market opened with a positive gap (I've marked with a red arrow on the left) but that gap was never filled. As mentioned before, the market cannot have unfilled gaps hence after exactly a year it is coming down to close the gap.
Price has broken the support level already. I'm expecting it to go up to the resistance level from where I'll take short trade and my tp will be just below where the gap has been created.
Let me know your thoughts.
Trade safe and good luck.
Trade active
Trade closed: target reached