I've completed another data set of stats for monday gaps going back to the start of this year - for the EU this time:
Take note of the difference in behaviour between this pair and the AU data already posted:
1. A larger number/% of gaps which take more than 1 day to close, with one taking 29 trading days to close - but for a massive 696 pips before it did!
2. I have found one gap here which hasn't closed (yet?) - the gap on Monday 13/6, which was about a week after the June 7th low. Note that it was only 3 pips.
3. The average gap size is only 1 pip larger than the AU - 24 pips for the EU. But the average swing away from the gap opening before closure is almost exactly double that of the AU - 121 pips compared to 60 pips for the AU.
It could be considered a concern that there is a gap that hasn't closed, however given its size (3 pips) it could be considered insufficient in size to worry about - for example if Wink's rule of not trading a gap of < 20 pips is adopted (or less for some more aggressive?) then it would be eliminated as a problem.
Personally looking at the size of the swings away before closure occurs I wouldn't necessarily leave a position open (personally I'm still uncomfortable with that), however certainly if a gap does swing out that far, then the gap close becomes a very attractive target if one has the patience.
