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Monday, August 25, 2014

Gap Trading Signals (August 25 – September 8, 2014)

Note: All the trades below were entered on August 25, 2014. If you’d trade the signals, they mustn’t be entered not later than 7.00 AM GMT on August 26, 2014.  

Gap trading offers unique trading opportunities when they happen on hourly charts and on many currency pairs and crosses simultaneously. In the year 2011, there were constant gap-ups and gap-downs in the currency markets, which brought great trading opportunities. In the year 2013, gaps were a curiosity at the open of the markets on Mondays. The gaps that occurred at the open of the markets this week brought about some trading signals that have the potential of over 45% accuracy. Every trade could be entered with a stop loss of 100 pips and a take profit of 200 pips. With an RRR of 1:2, we’ve a satisfactory chance of survival.

Only 0.5% is risked per trade. With an account balance of $20,000, a position size of 0.1 would be used. The trading duration is 2 weeks. The breakeven stop is set after about 70-pip profit is made. A trailing stop of 100 pips is set after over 170 pips have been gained.

Gap Signals
EURUSD = Buy
GBPUSD = Buy
USDCHF = Sell
USDJPY = Sell
USDCAD = Buy
AUDUSD = Buy
NZDUSD = Sell
EURGBP = Sell
EURCAD = Buy
GBPCHF = Sell
CADCHF = Sell
NZDCAD = Buy
AUDNZD = Buy
AUDCHF = Sell
NZDCHF = Sell

Disclaimer: Trading signals are provided for information purposes only and shouldn’t be construed as trading advice.


Learn from the Generals of the Markets: Market Generals

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