Windows and gaps

[Christiaan]

So i finally got my hands on steve nison book on candlesticks and it is utterly fasinating I can see now that candlesticks is a very powerfull tool but to really understand it you need to make a in-dept study of it which i'm currently doing.

Anyway I want to talk about gaps or windows.You get a gap between the last candle of yesterday and the first one of today like in the stockmarket.Is'nt that what a gap is?If i'm right that means that in a 24 hour forex market you don't get gaps does this mean that candlestick patterns with a gap is useless in the forex market or do I have it all wrong.

The gap i'm referring to one candle entrire body and shadows don't overlap with the preceding candle but this does'nt happen in a 24 hour market

Please tell me what you think

 

[gedward3]

So i finally got my hands on steve nison book on candlesticks and it is utterly fasinating I can see now that candlesticks is a very powerfull tool but to really understand it you need to make a in-dept study of it which i'm currently doing.

Anyway I want to talk about gaps or windows.You get a gap between the last candle of yesterday and the first one of today like in the stockmarket.Is'nt that what a gap is?If i'm right that means that in a 24 hour forex market you don't get gaps does this mean that candlestick patterns with a gap is useless in the forex market or do I have it all wrong.



The gap i'm referring to one candle entrire body and shadows don't overlap with the preceding candle but this does'nt happen in a 24 hour market



Please tell me what you think

Hi Christian, there are many reasons why a stock will gap, 1 could be that if its listed on a UK exchange and a US exchange and the UK exchange closes and then stock keeps trading up on the US exchange by the time the UK exchange opens the next day the stock will more than likely have gapped up as that stock now has more demand.

You will get a gap on a Sunday in the Forex markets where it opens after being closed probably due to some economic news or an unforseen event such as a hurricane or refinery explosion in the Gulf Etc Etc.

Ged