Tbh, trading the gaps seems silly to me.  Its an area of support/resistance just like anything else.  The problem with trading the gap at the time is that the spread is absolutely horrible - about 3-4 times normal, so its not really an advantage of trading it as opposed to anything else.

Originally posted by CFXsignals

Tbh, trading the gaps seems silly to me.  Its an area of support/resistance just like anything else.  The problem with trading the gap at the time is that the spread is absolutely horrible - about 3-4 times normal, so its not really an advantage of trading it as opposed to anything else.

Well, if someone can take advantage of gaps then why not. But just like other currency movements, gaps r very hard to predict. Weekend Gaps are usually big and can result in margin call if proper money management is not practiced. 

In my opinion it is very risky strategy.

Well, gaps aren't hard to predict you see them on the chart.  But saying that they always fill is like saying the price of euro/usd always goes back to 1.3.  It probably will go back in a x amount of time, but that information is not useful.

It is not possible for a short term trader to trade gaps bcoz they can loose big money. Gaps do not take time to fill. So it is not a matter of "x" amount of time" It is "x" amount of pips. If gap is of big number of pips, it can be either big loss or big profit.

Gaps do take time to fill - I think I recall a statistic saying that weekend gaps over the last few years except in one case have taken 23 days to close.  Actually, there has just been one other gap that has failed to close within 23 days which occured in May.  Of course, the point is that in 23 days, the price can move 100s of pips - as in May, teh gap at 1.3070 failed to close yet, and has fallen almost 800 pips since then.

Ans: Gaps usually closes. The market will usually close back the gap that is formed.

 it may close or may not close. I agree with cfx that it is a risky strategy. 

There is going to be big gap tonight - anyone going to try and close it?

Anyone get benifit from previous gaps please share?

I believe that this isk really risk to keep positions open for the gap hunting if little went into wrong than we can lose big becasue when gap occure in other side than stops will not work and we may lose big.

Yes you don't really know what is going to happen over the weekend so it is always a risk.  Also trading the gap - unless there is another decent reason for taking a position I suggest that you wait until a decent trading time.

I never tried or saw anyone trading gaps. But gap trading doesnt involve keep ur trade open during weekend. But it actually involves opening a trade after a gap occurs.  This style of trading assumes that gaps will always close.