Recommended timeframes: M5
This trading method is intended for use with CFDs; however, we will apply it to the contract for difference on shares of American International Group, Inc. (instrument AIG). For this technique, it is advisable to trade at peak market activity; the optimal time to begin trading is at the start of the American session.
Short and long positions can be opened under the following conditions:
1. There was a pause at the start of the American session.
2. The gap was at least ten points.
Take profit at 40 points.
The stop loss is set at the previous day's closing price.
An example of opening a sell positions is shown on figure 1:
Fig 1
An example of opening a buy position is given on the figure 2:
