PRO_Indicators

AAPL / D1 : exhaustion gap to trap the dumb money ?

Short
NASDAQ:AAPL   Apple Inc
TIP :
A trend in stocks generally has 3 types of gaps along the way :
  • 1st gap is often a breakout gap to trigger the trend trade
  • 2nd gap is a common gap acting as continuation on the trend
  • 3rd gap generally occurs like a trap at the end of the trend. Trying to show the stock has some more potential when it's already to late. Dumb traders enter, smart money reverses. The gap is generally filled a few days after it occured. Signaling the trend is terminated and that the prices will enter in corrective territory.

Hope this idea will inspire some of you !
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Phil

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