Gap strategies: do you trade the weekend gap?

The Sunday open sometimes gaps far from Friday's close, and gap traders try to fade or follow the gap depending on context. It's a thin, fast market with wide spreads — a specialty, not a starting point.

Gap strategies: do you trade the weekend gap? — bid-ask spread diagram
The bid-ask spread on a currency pair

Have you traded gaps?

  • your rule for fade versus follow
  • how the thin Sunday liquidity affected fills
  • whether the gap usually closed in your data
Gap strategies: do you trade the weekend gap? — risk-reward diagram
A risk-reward ratio of 1 to 2

The weekend gaps guide explains the mechanics and the risk.

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