How To command over PRICE GAP. The Right Way towards trading accuracy !

GAP : Financial term

The amount of a financing need for which provision has to be made. For example.  XYZ company might need $10 million to purchase and equip new plant facility.  It arranges a mortgage loan of say...  $5 million secures equipment financing of $2 million and obtain new equity of $1 million. That leaves a gap of $2 million for which it seeks gap financing. Such a financing may be available from state and local governments concerned with promoting economic development.

Securities : 

Securities industry term used to describe price movement of forex.  When the day trading range of a currency pair does not overlap the next day causing range or gap,  in which no trade has occurred.  This usually takes a place because of some extraordinary positive or negative news about forex.

PRICE GAP

Forex price jumps from last trading range without overlapping.  During market hours, major data hits the chart in aggressive mode considered as significant movements by technical analysis such a gaps are know as oversold positions.

Mainly price gap considered by oversold and overbought positioning. Forex market that has experienced unexpectedly sharp price decline according to some major news of technical analysis it is for an immense price rise.  There are no sellers remaining,  the price will rise and will continue as an OVERBOUGHT as it is reversed to price drop called CORRECTION by technical analysts. When market leads to overbought. Remained few buyers to one side, chart starts loosing strong trend and holds a position to support or moves further.

GAP opening price of a forex chart is significantly higher or lower than previous days closing price.  For example.  ABC company was the subject of a $70 takeover bid after the market closed with it shares trading at $50, it share price might open Monday morning at $65. There would, therefore, a gap between the closing price of $50 and an opening price of $65. The same phenomenon can occur on the downside is a company reports disappointing earnings or takeover bid falls through.

How to deal with GAP in trading hours. ?

Don’t....

In any trading session especially AMERICAN sessions, we have to consider trading range as per limit up and limit down factors.

We strongly recommend for SUSPENDED TRADING means the temporary halt in a particular security in order to prevent loses from major news announcements.

In forex currency trading there is no such an advance notice receiving method like stock from listed companies. Therefore, forex trader must halt in order to stabilize equity gets affected by news development.

What can we do....

Those who are willing to get benefited from the gap down and gap up of chart behaviour must consider weekly trading strategies.  Accuracy for hitting take profit of 30 pip is 95%.

• 1. Understand limit up / limit down of your trading account
• 2. Do not engage your equity between market hours i. e.  From Monday to Friday.
• 3. Learn advanced chart reading strategies
• 4.  Create a projection of your real forex trading account.
• 5. Before start up...  Please practice in demo first.