I know of a lot of traders who only trade gaps due to their high predictability. Whether the move is up or down, the emotions of trapped traders are the same. If you are part of the range that is trapped, you are only thinking about one thing, how do I exit this trade with as little loss as possible? The graph above shows that there are too many people trapped...
Three types of gaps: Breakaway, Runaway or Measuring Gap and Exhaustion Gap. Breakaway gap: 1.At a completion of an important price pattern and generally the breaking of a resistance occurs on a breakaway gap They sign the beginning of a significant market move 2.Breaking of a major trendline, in a reversal signal can also see a breakaway gap 3.They occur on heavy...
Hi Traders! Today we look at a bit specific bitcoin analysis. It will be about bitcoin but on CME futures exchange. Have you heard of CME gaps? Many people are starting to talk about CME gaps. How do these gaps actually come to existence? There are two options: CME doesn't trade futures over the weekend and is off. However, crypto exchanges normally work at...
WSP had a massive run up yesterday, gaining over 10%. I love seeing when a stock is overextended it just gives me more reason to short it, the mean of WSP is -0.19% so there more negative days than positive. Based on the data its a normal standard deviation of 68%, therefore im looking to trade between $2.19 and $1.78, lets see how it reacts between $2.060 and $1.92.
Hello traders! After that deeper corrective decline called double zig-zag W-X-Y pattern on Bitcoin , it's time to take a look at potential support levels. We decided to take a look at Bitcoin dominance ( BTC .D) against the ALT dominance (OTHERS.D), where we clearly see a corrective decline in wave 4 that can find support soon, ideally around previous wave »iv«,...
Gap Trading Strategy Rules-How To Trade Gaps 1. You need to choose a currency pair with a high level of volatility. btcusd is a good example but any currency pair that forms a weekend gap should also be good. 2. When the trading day starts on Monday, look to see if there is a gab. Make sure that the gap is at least 5 times the average spread for the pair. For...
$ATVI pretty crazy to see the gap from Feb 2017 was from 39.78 to 44.93. Todays low was 39.85... Such a great coincidence!
A way to determine price objectives based on gap theory
1 we have to analyse what kind of gap was it. ( runaway, breakaway, exhaustion) 2 current gap on a 1 minute chart is a Breakaway, as it has broken through a short term trend line, 3 when we have a breakaway gap, the gap close is less likely, so we're waiting for a consolidation that will nearly fill the gap, in our sample it's 50% Fibonacci area. 4. we're placing...