I took this trade on Sunday night with light volume as usual and a few hours ahead of a high impact Chinese announcement. WHY would I do such a thing? To prove a point about volume and its significance.
Look at the volume print during the market opening and how price reacts afterwords. Massive volume spikes and price can't go higher? When it comes back to that level on no volume and stops, I have a high probability trade short. I take an ultra safe stop above the swing high on Friday at the end of the day with a 2% risk. I would never let it go that far but it is a mere safety stop in case of ............who knows?
I manually take profit a mere 12 pips away because the reaction is not as sharp as I'd like to see and the price seems to just halt. Result is a 1% return on my account in about 25 minutes. I could have made more by sticking around but you must take everything in context. Sunday night, ahead of big news, not the reaction I'm used to seeing(experience). Bulls make money, Bears make money, Pigs get slaughtered.
Your lack of experience, or your ability to not think 'out side the box' is what doesn't cause to know how to trade against a over the weekend gap. Say right before market close you have two accounts, in which one you buy and the other you sell as you expect a market gap on Sunday when the market opens. You use all of your margin 500:1 for an example. Explain how a trade can profit by a lop sided market... Yen pairs have been known to gap 200-400 pips over the weekend on gap events. Remember if you use all of your leverage on 500:1 then every 20 pips is 100% profit... A 400 pip gap would result in 2000% in the winning account, while the losing account would have a negative 2000% balance, but brokers will NEVER be able to get those gains from you on a negative account a balance. All in all that form of trading is never even spoken about on forums because most of these 'pros' are to simple minded to even come up with that form of advantage trading themselves. I am a gap trader and I have been doing it for a long time. I can assure that that form of trading will work, you simply need a broker which won't change your leverage right before market close, and a broker which will not have widen gaps prior to market close. It would be best to have a broker which closes once nY session closes!
My avatar explains "social trading" perfectly.