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ICT New Day Opening Gap - NDOG PDF Download

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57 views3 pages

ICT New Day Opening Gap - NDOG PDF Download

Uploaded by

jessnarsinues
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ICT New Day Opening Gap – NDOG

This blog post focuses on the ICT new DAY opening gap abbreviated as ICT – NDOG.

ICT new day opening gap is basically the gap between the closing price at 05:00 PM
(New-York local time) and the opening price at 06:00 PM (New-York local time). Because
the trading stop for an hour on every day from Monday to Thursday.

But on friday it closes for week-end and the gap on monday opening is called ICT New
Week Opening Gap.

Identification of ICT New Day Opening Gap


To identify an ICT new day opening gap (NDOG) you have to mark the closing price at
05:00 PM and the opening price at 06:00 PM.

ICT new day opening gaps act as a magnet for the price and price often retest and fill
the gaps for the fair value because these gaps are also the real fair value gaps.

After marking the New day opening gap in daily chart always go into lower time-frames
like 15 minutes to trade the ICT NDOG.
Consequent Encroachment of NDOG
Consequent encroachment is the 50% retracement level (middle) of new day opening
gap and it can be the most reactive level of price. You can use fibonacci tool to measure
the consequent encroachment of NDOG.

By applying the fibonacci tool (having inputs 0, 0.5 and 1) from low to high of the NDOG
you can find and mark the 50% retracement level of NDOG

How to Use ICT NDOG?


According to ICT you should have at least 5 new day opening gaps for Monday,
Tuesday, Wednesday, Thursday and friday annotated on your chart which will give you
the reference to the fair value of price.

These NDOGs will act as support and resistance levels for price as well as the draw on
liquidity levels and you will see price rejection and accumulation around these areas.

To trade the ICT new day opening gap you should have a Bias for the next price move.
(I) Bullish Scenario
If your bias is bullish and price is above the ICT NDOG then you will wait for price to
retrace and test the NDOG, after the confirmation of reversal like Market Structure Shift
in lower time-frame (5 minutes or 15 minutes) you can execute a buy trade targeting the
next draw on liquidity.

But if price is below the NDOG and your bias is bullish then this NDOG will be a draw on
liquidity and price will test and close above it. After the close of price above the NDOG,
it will act as a support for price.

(II) Bearish Scenario


If your bias is bearish and price is below the ICT New Day Opening Gap then you will
wait for price to retrace and test the NDOG, after the bearish confirmation like Market
Structure Shift in lower time-frame (5 minutes or 15 minutes) you can execute a sell
trade targeting the next draw on liquidity.

But if price is above the NDOG and your bias is bearish then this NDOG will be a draw
on liquidity and price will test and close below it. After the close of price below the
NDOG, it will act as a resistance for price.
Why is the NDOG significant?
ICT New day opening gap is considered a liquidity void because no trading activity
occurs during that hour, resulting in a gap. This gap often acts as a magnet for price
movements, with the price frequently retesting and filling the gap to achieve a fair value.

Why is it recommended to track multiple NDOGs?


Tracking multiple NDOGs on your chart helps you understand the market’s fair value
over time and provides key support and resistance levels. This information is crucial for
making informed trading decisions based on price behavior around these gaps.

Does a NDOG is Over After the Price Fills it?


No an ICT NDOG can work for several days that’s why its recommended to have it for at
least a week.

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