Notes
- The New Week Opening Gap (NWOG) is a difference between the previous week’s closing price and Sunday’s opening price.
- NWOG serves as a tool for identifying large fund fair value levels.
- The gap between Friday’s close and Sunday’s open represents a real liquidity void since no trading occurred between those two points.
- Michael recommends having at least the last four NWOGs in our chart. He prefers tracking five weeks to maintain a dynamic four-month perspective.
- Most retail traders stop monitoring gaps after they are filled. Not us.
- Even though Michael doesn’t draw NWOG quarters, he watches them.
- For clarity, we should label the NWOG with the Sunday date to avoid confusion as multiple gaps accumulate over time.
- Old NWOGs can act as support and resistance levels.
- Michael keeps track of NWOGs for various assets like NQ, ES, YM, DXY, EURUSD, and GBPUSD.
- Our chart should be regularly updated by marking the NWOG at the end of each trading week and observing how the market reacts to these gaps over time.
- Alternative NWOG uses the gap between Friday’s closing price at 4:59 PM EST and Monday’s opening price at 9:30 AM EST.
New Week Opening Gap
New Week Opening Gap Example
New Week Opening Gap Examples
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