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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