Identify: Forex Price Gap & Discrepancy

Opening price gaps commonly occurs with an eventful outcome normally associated with a fundamental factor affecting price difference from a previous closing price. As such a substantial price fluctuation do occur in between trading sessions. One such typical example is the present market situation carried out the opening trading week in Asia and the next trading sessions between Europe and the North American trading sessions. The substantial rescue package as some have termed a bailout-lite which turned out to be a remarkable $125B for banks in Spain over the weekend have contributed to the market's calmness in the opening trading week in Asia. However, it seemed to have lost steam as doubts continue to linger over the market prices as it slowly moves lower. This is expected as the price gap warrants a technical correction.

However, the price behavior should well be clear that there is indeed a price discrepancy with most charting systems that is not truly reflected on the charts over a weekend period. For those with enough market knowledge and market trading experiences, such discrepancy would not go unnoticed; especially as it occurs across the board. Relatively making trading and market analysis for the newer traders indecisively harder to dissect. And hopefully that the applied technical analysis and approach to trading would prove to be helpful from this article and analysis that MegaTrade101 provides.

In Focus: EURGBP

Daily EURGBP Fig.1

Daily Closing Price for the week ending June 08 is 0.8085 contrary to the weekly closing price of 0.8137. The 0.8137 price should not be reflected on the closing price of the previous week ending June 08 as it is the opening price gap for the start of the trading week in Asia.

As follows: O=0.8075 H=0.8140 L=0.8050 C=0.8085 which is identified as a 10 pt. body with a 90 pts high wick and a 25 pt wick low. Based on the OHLC weekly prices gathered and shown on our price page indicator.
And not as shown on the present weekly figure 2 below with an O=0.8075 H=0.8150 high L=0.8050 Low and a C=0.8137 
with a 62 pt body and a 13 pt. wick high.

Weekly EURGBP Fig. 2

We have expanded the weekly candlestick bar formation for a better view of such discrepancy as shown of figure 2 and compare it with the daily chart above.

NOTE: Please check weekly price chart and compare it with the daily chart here to show the discrepancy in the closing prices and reflects the true market sentiments that transformed over the weekend's news report.

By doing so, the weekly chart would not truly reflect market price action but an unclear & dis-illusion of the candlestick charting system for some traders. This is one of the system flaws that has not have been modified to date and quite a popular trading tool to use. It still is as long as one should know what is truly right and can identify the flaws.
Thus keeping us at MegaTrade101.com abreast with the weekly opening in Asia towards the Closing price in New York until all trading bank sessions are done. We would consider a 10-15 pip spread difference as possible slippage at times but not a huge discrepancy such as this in spite of our favorable outstanding long position with the EURGBP cross.
As a mater of due diligence pls refer to your charts and compare this application with the other majors and cross rates and see if you can discover the same. And would appreciate a feedback by email at info@megatrade101.com