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Best Way to Trade Forex With Gap on Price

There are too much trading strategies on the internet and one of the oldest is trading with the gap. Forex traders are looking for complicated strategies that they forget an old strategy that gives 90% successful chance for the past decade.

Trading with the gap is a very easy strategy with a very simple rules. Because we know that we should not fight the market, and we should follow the trend, then we should follow the market reaction during the opening of forex after weekends. Let us know, what does the traders do when they see a gap? 


If you have done the research, they are all saying that, you should trade the opposite of the gap. If the direction of gap is up, enter sell, if the direction of gap was down, enter buy.

But, what is the best way to trade forex when we see a gap? What are the factors to be consider on trading with the gap?

First to consider is the volume, If the volume of was really big, it means that the institutional traders and the professional traders made the gap which is a very strong signal that the direction of gap will continue. Second, do not forget the long term support and resistance, if the price crosses above the resistance level, its a good entry signal, same with sell position when the gap goes down the support area.

Why we should consider the volume, and the long term support and resistance? Because not all gaps are filled immediately, Nobody is sure if how many years it will fill the gap. Are we ready to wait for a very long time until it fills the gap? Maybe not! So what is the best strategy to use when trading with the gap? Follow what the professional traders say, we will sell if the direction of gap is up and we will buy if the direction of gap is down but we will trade only for few pips so even if the gap was not filled we have gained sure profit. Do not forget to put the trailing stop to protect the profit.

Gap happens almost every week, It may be boring for some to wait for the weekend, but if we mastered trading with the gap, we can have a profit that is more than what we can make for the whole week.

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