2023 ICT Mentorship - NWOG - New Week Opening Gap [Part 2]

Notes

  • The NWOG is defined by the price difference between the Friday close and Sunday open.
  • New Week Opening Gaps act like magnets. The price tends to be drawn to them like the old highs and lows.
  • The opening price of the new week (e.g., 6 p.m. New York time) often holds significance throughout the week and even months later.
  • Friday closing price and Sunday opening price are not random.
  • A market that moves sharply away from a new week opening gap often enters a trending phase.
  • Market consolidation occurs when the price fails to move away from the current NWOG.
  • When multiple New Week Opening Gaps exist close together, the market will likely be range-bound, ideal for scalpers rather than trend traders.
  • Michael recommends plotting all NWOGs that exist 60 days back on the chart. Five NWOGs is the minimum.
  • Blending the analysis of NWOGs with other previously taught ICT concepts is a way to get a more accurate picture of the future market direction (bias).

ICT New Week Opening Gap

Sharp Move From NWOG - Trending Environment

Consolidating Market

Price Reactions To NWOGs On Non-Farm Payroll Friday

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