I got a couple emails on the AUD/USD Gap chart I posted earlier and the common question was, "So when do you get in?
" I didn't mention it this morning but it's no different than "usual"... let me explain...
After such a Gap, simply apply some technical analysis to find an entry. I my case, I used divergence with MACD (pick your Indie- doesn't really matter).
As shown here, there was CLEAR AND STRONG divergence AT RESISTANCE
(78.6 Fib level). It doesn't get much better in identifying this setup.
That said, getting in AT ALL
in these Gap Trades is often just fine- so just GET IN! LOL!
I went short @ 10:31a, NYT @ 1.0516 and the trade is now sitting @ +55 with 70-90pips to go to close the Gap...
I hope this helps!