Mastering the ICT New Day
Opening Gap (NDOG): A Complete
Strategy Guide
December 2, 2024May 3, 2025ICT Concepts
If you’re exploring advanced trading concepts, understanding the ICT New
Day Opening Gap (NDOG) can significantly improve your trading precision.
In this guide, we’ll break down what an NDOG is, how to identify it on your
chart, and how to trade it effectively using the ICT NDOG strategy.
What is the ICT New Day Opening Gap?
The ICT New Day Opening Gap refers to the price gap created between the
market’s closing price at 5:00 PM (New York time) and the opening price at
6:00 PM (New York time) from Monday to Thursday. This one-hour break in
trading leads to a gap that traders can exploit. On Fridays, the market closes
for the weekend, and the gap formed on Monday’s opening is known as
the ICT New Week Opening Gap (NWOG).
How to Identify the ICT New Day Opening Gap on Your
Chart
To spot an ICT New Day Opening Gap on your chart, follow these steps:
1. Mark the closing price at 5:00 PM (New York time).
2. Mark the opening price at 6:00 PM (New York time).
This gap often acts as a draw on liquidity, pulling the price back to it for fair
value. Essentially, it behaves like a Fair Value Gap (FVG), and tracking it can
provide valuable insights for your trading setups.
For better precision, after marking the NDOG on the daily chart, switch to
lower time frames (like 15-minute or 5-minute charts) to refine your trading
entries.
Consequent Encroachment: The Key to NDOG Trading
“Consequent Encroachment” refers to the 50% retracement level of the ICT
New Day Opening Gap. This midpoint often serves as a critical level for price
reaction. To calculate it, use the Fibonacci tool, setting the inputs to 0, 0.5,
and 1. Draw the tool from the low to the high of the NDOG to find the midpoint
where price is most likely to respond.
ICT New Day Opening Gap Strategy: How to Trade It
To trade the ICT New Day Opening Gap effectively, it’s recommended to
track multiple NDOGs throughout the week (Monday to Friday). Marking these
gaps on your chart provides a reference for fair value, turning them into
support, resistance, or draw-on-liquidity zones.
Here’s how to approach trading NDOGs in both bullish and bearish scenarios:
(I) Bullish Scenario
If your bias is bullish and the price is above the NDOG, wait for a retracement
to the gap. Once the price retests the NDOG and you see confirmation of a
reversal (such as a Market Structure Shift on lower time frames like the 5-
minute or 15-minute charts), consider entering a buy trade. Your target should
be the next draw on liquidity.
If the price is below the NDOG but you maintain a bullish bias, the gap acts as
a draw on liquidity. Expect the price to test and eventually close above the
NDOG, which will then turn into a support level.
(II) Bearish Scenario
If your bias is bearish and the price is below the NDOG, wait for it to retrace to
the gap. Look for a bearish Market Structure Shift on lower time frames as a
signal to enter a sell trade, aiming for the next liquidity level.
When the price is above the NDOG but your outlook is bearish, the NDOG
acts as a draw on liquidity. Once the price closes below the gap, it will likely
turn into a resistance zone.
Why is the ICT New Day Opening Gap Important?
The ICT New Day Opening Gap is critical because it represents a liquidity
void—no trading occurs during the one-hour market pause, creating a gap.
This gap tends to act as a magnet for price movements, with price often
retesting and filling the gap to find fair value. Recognizing and marking this
gap can give traders an edge in anticipating price behavior.
Why Track Multiple ICT New Day Opening Gaps?
Tracking several NDOGs throughout the week helps build a broader
understanding of the market’s fair value over time. These gaps create key
support and resistance levels, and by monitoring price behavior around them,
you can enhance your trading decisions.
Does the ICT New Day Opening Gap Expire After
Being Filled?
No, the NDOG remains relevant even after the price fills the gap. It’s
advisable to keep NDOGs marked for at least a week, as they can continue to
influence price movement beyond the initial fill.
