Forex Gap – an interesting trading system

Strategy Forex Gap – an interesting trading system which uses one of the most disturbing phenomena of the market Forex – week gap between the closing price on the last trading day of Friday and the opening price on Monday. The difference is due to the fact that the interbank foreign exchange market continues to react to fundamental news over the weekend, opening on Monday on a level with the greatest liquidity. The proposed strategy is based on the assumption that the difference is due to excessive speculation and volatility, thereby a position in the opposite direction should probably become profitable after a few days.

Amenities
Regular trade with clear rules.
Without stop-loss, a search of premature hits.
Statistically proven profit.
It should open position at the beginning of the week and closed just before the end.

How is traded?

Select a currency pair with a relatively high level of volatility. Recommended GBP / JPY, the pair shows the best results during the tests. But other pairs involving JPY should work too. Incidentally, this is a good strategy to use in all major currency pairs.

When starts the new week is necessary to have a gap (gap). A difference must be at least 5 times the average spread for the couple. Otherwise it can not be considered valid signal.
If Monday at the opening of the market price is below the price on Friday ie the difference is negative, you need to open a long position.
If Monday opened higher price on Friday ie the difference is positive, you need to open a short position.
Do not place the stop loss or profit level (this is very rare, but stop-loss is not recommended in this strategy).
Just before the end of the weekly session (for example, 5 minutes before the end) should be closed position.
And this strategy has nedostaatsi, so can be used with other signals to more accurately determine the levels of input