What Is a Gap? A gap is an area discontinuity in a security's chart where its price either rises or falls from the previous day’s close with no trading occurring in between. Gaps are common when news causes market fundamentals to change during hours when markets are typically closed, for instance an earnings call after-hours.
KEY TAKEAWAYS -A gap is a discontinuous space in the price chart of an asset or security, often occurring between trading hours. -There four different types of gaps – Common Gaps, Breakaway Gaps, Runaway Gaps, and Exhaustion Gaps - each with its own signal to traders. -Gaps are easy to spot, but determining the type of gap is much harder to figure out.
What Does A Gap Tell You? Gaps typically occur when a piece of news or an event causes a flood of buyers or sellers into the security. It results in the price opening significantly higher or lower than the previous day’s closing price. Depending on the kind of gap, it could indicate either the start of a new trend or a reversal of a previous trend.
Gapping occurs when the price of a security or asset opens well above or below the previous day’s close with no trading activity in between. Partial gapping occurs when the opening price is higher or lower than the previous day’s close but within the previous day’s price range. Full gapping occurs when the open is outside of the previous day’s range. Gapping, especially a full gap, shows a strong shift in sentiment occurred overnight.
Thank you for sharing this. There is another gap at about 9.5$ is it possible to be closed also?
Muzaaa
⋅
@warrior4511 everything is possible. When you consider this bull market is completely different because of institutional investing and 900 BTC mined/day and also printing usd and pandemic situation it is more likely price will not get to such a low level. Use gaps as one of keys to evaluate your decisions.
kalifdj
⋅
It should closed it. But 19000 it’s far away. Will it be still correction or downtrend in that case?
Breakaway Gaps and Acceleration Gaps not being filled is a testament to the strength of this bull market. Today, the move off the recent low seems impulsive, 9 waves off the 50K level appears the correction is over. A move above the top is all that's left to signify the bottom is in, nearly 62.8% correction wave 3 or 1 is a bullish development.
abel11
⋅
gaps closed, this is accurate
Dave-FX-Hunter
⋅
I think the gaps doesn't play same role here as in the fx