New week opening gap in gold trading

A new week opening gap (NWOG) is the range between the last price on Friday at 5 p.m. New York time and the first price when trading reopens on Sunday evening. ICT also uses the new day opening gap (NDOG), the range between the 5 p.m. close and the reopening after the daily break. Both are marked as zones on the chart and carried forward.

How it applies to gold trading

Gold’s weekend gaps can be large after geopolitical news, and the daily break produces small but visible gaps too. ICT practice treats these gaps as areas price is drawn back to and as support or resistance when it returns, with the midpoint (consequent encroachment) watched in particular. Traders often keep the last several NWOGs on the chart, as older ones can still act as references weeks later.

Not every gap fills, and large gaps on real news can mark a genuine repricing. Combine the gap with structure and bias.

Worked example

Example (hypothetical numbers): gold closes Friday at 4,012 and opens Sunday at 4,026, a $14 NWOG with a midpoint at 4,019. On Monday in London, gold dips to 4,018, reacts and rallies to 4,045. A trader who bought at 4,020 with a stop at 4,010 risked $10 for the move.

A common mistake

Assuming a weekend gap must fill before gold can continue. Gaps on major news often stay open.

See also: Weekend gap, Gap, Consequent encroachment, Daily break.

Frequently asked questions