The Monday open can gap, and a gap at 22:00 London time on Sunday on thin liquidity isn't something I want to scalp. But the gap itself sometimes gives a usable bias for the London session. My protocol:
Sunday evening
Note the Friday close for my pairs.
Check weekend news: elections, central bank comments, geopolitics.
Monday morning before London
Size of the gap in pips and as a share of the average daily range.
Has the gap been filled during Asia, partially or fully?
Where is price relative to Friday's close at 07:00?
How I use it
Gap filled in Asia: no special bias, normal plan.
Gap unfilled, small (under 20% of ADR): the Friday close is a key level for London.
Gap unfilled, large, with clear news: I lean in the gap direction and don't fade it.
No trading before 07:00 London on Mondays. Spreads in early Asia on Monday can be very wide.
My journal says the Friday close works as a level about as often as a coin. But on news gaps, the trend direction has held more often than not. How do you handle Monday opens?
