The gap itself takes its origin in the fact that the interbank currency market continues to react on the fundamental news during the weekend, opening on Monday at the level with the most liquidity.

Long term trading (weekly charts) - Trading Systems - xelenew.web.fc2.com Forex Trading Forum

The offered strategy is based on the assumption that the gap is a result of speculations and the excess volatility, thus a position in the opposite direction should probably become profitable after a few days. The last gap gives a wrong signal and yields a medium loss. Use this strategy at your own risk.

It's not recommended to use this strategy on the real account without testing it on demo first. Do you have any suggestions or questions regarding this strategy? You can always discuss Forex Gap Strategy with the fellow Forex traders on the Trading Systems and Strategies forum.

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Forex Gap Strategy — Weekly Forex Trading Strategy

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No stop-loss hunting or premature hits. You have to open position at the week's beginning and close it right before the end. Select a currency pair with a relatively high level of volatility. But other JPY-based pairs should work too.

By the way, it's a good strategy to use on all major currency pairs at the same time. When a new week starts look if there is a gap.

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A gap should be at least 5 times the average spread for the pair. Otherwise it can't be considered a real signal.

If Monday's or late Sunday's if you trade from North or South America open is below the Friday's or early Saturday if you trade from Oceania or Eastern Asia close the gap is negative and you should open a Long position. If Monday's open is above the Friday's close the gap is positive and you should open a Short position.

Don't set a stop-loss or a take-profit level it's a rare occasion but stop-loss isn't recommended in this strategy. Right before the end of the weekly trading session e. Please, disable AdBlock extension in your browser.