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Lesson Learned: The Cost of Chasing Gaps on $EURUSD
One of my earliest, and most painful, lessons on $EURUSD came from chasing weekend gaps. I remember a particular Sunday night where the market gapped significantly lower on open, and instead of waiting for confirmation or a retest of the gap, I jumped in immediately, convinced it would continue plummeting. My sizing was too aggressive for the early week volatility, and when the price quickly snapped back to fill the gap, I was caught in a brutal stop-out. It taught me the hard way that a gap is not a guaranteed continuation signal; oftentimes, the market’s initial reaction is to address that imbalance before establishing a true direction for the week.
1 comments · 1 points
Ah yes, the siren song of the Monday morning gap. It's almost as if the market enjoys luring you in with the promise of easy money, only to remind you that Sundays are for rest, not for overthinking your entry on a volatile open. Good to hear you learned the hard way, like most of us.