Over trading is popularly known as an evil in the world especially in the Forex trading. Why is this so? Over-trading is kind of a malicious twin, it lacks confidence and in most cases it does not lead to direct losses. However, it can at times cost traders a lot of money because as a trigger, it hinders traders from venturing into trades.
Normally, the gap trading strategy that is; either buy or sell after a weekly gap to reward from gap’s compensation has a great and proven statistical evidence behind it. Do you really know about forecasting the weekly gaps based on information available to us on last Friday session?
One of the most interesting and thrilling trading system that utilizes one of the most disturbing phenomena of the Forex market is none other than the Forex Gap Strategy ( a weekly gap). This was between last Friday’s close price and obviously the current Monday’s open price.
Precisely, the gap itself takes its foundation in the fact that the inter-bank currency market is and continues to react on primary news during the weekend and morose the opening on Monday which happened to have the most liquidity levels.
The above mentioned strategy is based on the assumption that the bridge is as an impact of speculations and the excess variability. As such, a position in the opposite direction is expected to have high chances of becoming very rewarding after a few days or weeks.
- Frequent trading with simple and clear rule
- Remarkable and proven returns
- Absolutely no premature hits.
- Open positions in the beginning of the week and close at least before the week ends.
This is just a tip on the crazy prediction strategy. There is much more. However, this write-up is of much use especially for beginners.