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.

Source: www.tallinex.com

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