NWOG stands for “New Week Opening Gap.” It is a concept introduced by Inner Circle Trader (ICT), also known as Michael J. Huddleston, in February 2023. The NWOG is identified by noting the opening price on Sunday and the closing price on the previous Friday. The gap between these two price points is then extended across the entire week of trading. The midpoint of this range is referred to as “consequent encroachment” and can act as a significant level of support and resistance throughout the week
This concept helps traders understand market phases, such as consolidation, where the price tends to gravitate back to the NWOG. In trending markets, prices typically move away from this level more aggressively and do not return to it frequently The NWOG is a useful tool for various markets, including Forex, stock index futures, and individual stocks.
Some reference videos for this concept:
https://www.youtube.com/watch?v=WKKnlIIkBTk
https://www.youtube.com/watch?v=BM1mqQv-ypk
