Gap Trading Knowledge Resources?

Hi folks,

I'm starting to look at gap trading as a new weapon in my forex armory. Although I've done a fair amount of trading and would not consider myself a rookie, I didn't know where else to put this as I am fairly new to gap trading strategies.

I would appreciate anyone that could shed light on this method of trading, or point me to some useful articles that might go through some methods for selecting the correct gap trades to take as well as entry, SL and TP methods. I do have a basic understanding of how and why gap trading can be profitable, but would not be disappointed if anyone wanted to chip in with a basic summary of how to best execute a gap trade.

Thanks in advance!

You do? Well let's hear a summary cos I'm not sure I even know what 'gap trading' is! I'm guessing it has something to do with trading weekend gaps on the assumption they will be filled maybe?

Exactly. Apparently there is a 'good' probability that if price 'gaps up' over the weekend, it is likely to retrace and fill the gap at some point to close to the closing price of Friday.

That's about the extent of what I know, sorry it's not a very thorough explanation.

How about this thread, there's even an EA for it!