Author: Igor Sayadov

I started working on the Forex market in 2000. After first failures, read a great deal of materials on financial markets and came to the conclusion that it would be necessary to create own approaches to analysis and trading. In 2005, all knowledge and skills were combines in my own trading system called Extra. The system perfectly defines all stages of market tendencies, so all traders have to do is to enter and exit the market with the profit that’s enough for them. Despite the system’s being excellent, it still requires strict risk management, like any other trading strategy.

What is a Gap? Main Types and Gaps Trading

The Gap is shown in the chart above as yellow rectangles. This is a practical gap in the flow of quotations reflecting a serious difference between the opening and closing prices in trading sessions. A quick look at the chart captures a large number of such phenomena. This means that if we classify them we may find a lot of opportunities to use them in trading. But first, let us talk about the reasons which a Gap emerges for.