New Week Open Gaps, or NWOGs, are a crucial aspect of ICT trading. They are formed from the gap between the closing price on the previous Friday and the opening price on the subsequent Sunday. This gap, along with the midpoint, is extended throughout the upcoming week. These gaps represent a unique market phenomenon that can influence your trading strategy.
NWOGs serve as important points of fair value in the market. Like magnets, market algorithms often draw price action towards them .Interestingly, these gaps can remain relevant for weeks or even months! This makes them a powerful weapon in your trading arsenal.
It's recommended to record at least the five most recent NWOGs for reference. Tracking these gaps can provide valuable insights into potential market movements and points of fair value. This practice can help you stay ahead of the curve and make informed trading decisions.
When several NWOGs are located close together, the market often enters a range-bound phase. Combining your knowledge of these gaps with other ICT teachings can enhance your ability to predict market trends. This synergy can help you navigate the market more effectively.
Just remember, as with any trading strategy, using NWOGs should be based on a solid understanding of the market and your risk tolerance. Practice identifying and trading these gaps in a simulated environment before risking real capital. This approach will help you gain confidence and refine your trading strategy.
Understanding and utilizing NWOGs can help refine your trading strategy and give you a leg up in the market. Combining this with other ICT concepts like PD arrays and Optimal Trade Entry will drive you to a successful journey as a trader!