Forex Trading – Gaps
Yes, I am aware of that, but its difficult to know what is going to happen even up to the London session where the real trading takes place. There are very few traders in the market when the gap opens - the main volume happens on Monday - some traders even miss out Monday as it mainly involves clearing the weekend orders, rather than positioning for the week.
Yea. Trading starts slowly when it opens after weekend. Even if we assume that gap will fill, it will be in london session. Moreover it is possible that before filling the gap, it hits ur SL.
Well sometimes the gap closes in Asia. I also find that in those first few minutes of retail opening the price jerks up and down massively because of the lack of liquidity and mopping up gap traders. If you have a tight SL, its going to go in the gap.