Gap traders believe that in currency trading the pair tries to fill the gap.
I will update this one if it happens to be true.
Yes, GAP trading works.
I even checked GAP trading again between 20th and 24th of May for 10 pairs.
So let’s check to see if GAP trading worked this time?
On Monday morning the 20th of May we noticed a gap in some pairs.
On Friday the 24th I checked to see if it works or not.
The GAP already was closed for these pairs: $OIL, $NZDCHF, $AUDUSD, $AUDCHF, $AUDCAD, $CADJPY, $NZDUSD, $AUDJPY .
For $EURAUD the gap almost closed.
Among the pairs that I am monitoring only $AUDNZD did not close the gap. Normally it takes up to 2 weeks, though.
So, considering that 8 out of 10 pairs responded well to the gap trading.
We give it an 80% accuracy score.
In FX trading this is very good.
See below the #AUDCHF 4H chart.
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