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Gaps

Bitcoin - What is GAP?You may have noticed that I often use the word GAP, after many questions about what it is. I thought I'd tell you. What is GAP? If translated verbatim, a GAP (GAP) is a gap, the difference between quotes on Friday and the opening of the market on Monday. And if the difference between the closing price on Friday and the opening on Monday is significant, then a jump will occur. That is, the price is noticeably higher or lower than the price that was on Friday and it is clearly visible on the chart, as in the example below: We can see that the closing price on Friday was about $9295 and the opening price on Monday was $9705. That is about 410 points higher than the closing price on Friday: And this gap, which is formed between the market close price on Friday and the opening price on Monday, is called the GAP. Naturally, a GAP is not always formed. On average, it can be seen once a month and is more common in Forex and stock markets. Sometimes more often, sometimes less often, but the fact is that GAPs happen and you can make money on them. Why do GAPs happen? GAPs occur because during the time when the market is not active, namely over the weekend, a certain number of sell and buy orders are accumulated. And when the market opens on the night from Sunday to Monday, these very orders collapse and create a jump, as we saw on the chart earlier. Of course, this does not always happen, but only when there is a significant advantage in Buy or Sell orders accumulated over the weekend. Market makers see a huge number of Buy or Sell orders and, accordingly, we see the price visually above or below the market close values on Friday. As for the crypt currency: the futures market does not work over the weekend, while the crypt currency exchanges work 24/7, the price during the weekend can be called. It is worth noting one important point. As a rule, GAPs tend to close. Let us consider an example: Why do GAPs tend to close? The fact is that when the market opens significantly higher or significantly lower than Friday's price, then many orders are activated, many pending orders to buy or sell. Naturally, the stops of these orders are located near the Friday closing price. And thus market makers try to knock out the stops of those guys whose orders have worked at the opening of the market and take their money for themselves. After the gap was closed, the market can go absolutely in any direction. There are no special regularities here. In general, the gap tends to close, but sometimes it happens that there is a jump in opening prices on Monday, and it continues. It happens only when there is a strong trend movement or some fundamental factors come into play. For example, something could have happened in the economy over the weekend. That is, there is a tendency to close, but not always. You should keep that in mind! The probability of closing the gap is ≈ 70% Push ❤️ if you think this is a useful idea! Thanks for your support!
CME:BTC1!Education
by Valeriia_Top
7
SPY Short, Starting May 11 2020With the SPY losing traction im thinking we do one jump up back to $296 and then a straight shot back down towards $255 we have yet to fill the gap and as we always know, gaps are always going to get filled i think that once we reach that $255 gap its back to ATHs until Q2 where earnings might be a lot worse than people are anticipating especially with Disney suffering this much of a loss with their arks being closed like a month before Q1 ended I think disney as well as every other company will rebound off these lows and well see a bullish market until Q3 where earnings might not be as great as people think ultimately back to SPY, i think we do one more shoot upwards towards the $296 mark, then start seliing off Monday back down towards the $255 range to fill that gap that will be the new low and we wont go any lower
AMEX:SPYShort
by mandujanotony31
1
Price action & Psycholog - Pullback and gapsHello ! Key points : Support : important zone on weekly chart, amplified by breakaway gap, previous resistance on daily chart Pullback 50% Fibonacci Exhaustion gaps coupled with higher trading volume Despite the market drop on friday, it held the support The support is on an important zone on the weekly chart, which explains why the breakaway gap formed. I can imagine people thinking "if it's not holding the support I'm selling" and some people started (probably because the overall market was weak) bidding lower prices pre-market. On the way up, it is very clear that the stock encountered a resistance on that particular zone. The fact that it broke out, means that there has been a psychological shift in people's thinking. Which makes this zone now a decent support. ***Disclaimer : This is not an advice to buy the stock. Please, be aware that trading is a matter of probabilities, it only takes ONE trader to deny your trade.*** Thanks for reading and if you have suggestions or wanna discuss the idea, just leave a comment, I'll be happy to answer.
NASDAQ:ONLong
by UnknownUnicorn6734025
Runaway gap or Measuring Gap In Technical AnalysisThree types of gaps: Breakaway, Runaway or Measuring Gap and Exhaustion Gap. Runaway gap or Measuring Gap: It can be a gap or series of gap in the middle of a trend (uptrend or downtrend) – We can use this gap to measure the remaining move just doubling the amount already achieved since the start of the trend It moves with moderate volume It is a sign of strength of the market (weakness for a downtrend) Runaway gaps can work as support areas for subsequent market corrections They are generally not filled If you are interested in Technical Analysis Theory, please subscribe and watch my Lessons studio.youtube.com
NASDAQ:MSFTEducation
by Mauriello
3
The Importance of Gaps in Technical AnalysisThree 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 volume 4. Heavier are the volume, less likely the gap will be filled 5.The gap could be filled (generally not all the gap) 6. Upside gap they can work as support areas for subsequent market corrections 7. During an uptrend, it is important that prices do not follow below the gap, otherwise it is a sign of weakness If you are interested in Technical Analysis Theory, please subscribe and watch my Lessons studio.youtube.com
NASDAQ:GOOGEducation
by Mauriello
Very "old" trend-line in Starbucks - **IT WORKS**Good morning traders, Starbucks NASDAQ:SBUX hit a very strong Trend-line. We connected two points that are several years away and it's really interesting because it really stopped the market! This analysis contains not only a description of the current situation but is also partly EDUCATIONAL. The video content is as follows: 1. Market Profile (PinBar) 2. Volume Profile 3. Value Area 4. Trend-lines 5. Gaps 6. Zone trading We combine these points to create the whole picture. In the future, we plan to set up an alert manager for this type of trades so we can share it faster. Have good trading, FINEIGHT team
NASDAQ:SBUXLong
by Fineight
S&P 500 Gaps A look at the S&P 500 hourly chart shows numerous gaps created and filled, with most rejected, as price made a series of new lows at the open of each new trading day. Nearly every gap so far has been filled followed promptly by more selling. Friday’s record 10% move up on the state of emergency declaration saw price stop right at the most recent gap-fill level as well as the red downtrend line. Monday’s opening move will be an indication of what to expect in the short-term. A continued move higher would be bullish, while a rejection at the gap level and downtrend line would be bearish and likely lead to a re-test of the recent lows. A push below recent lows would likely lead to more selling ahead for markets.
SP:SPXShort
by PrepForProfit
1
Quick description how I use gaps in my decisions This video was more for a few of my friends asking me how I use Daily, Weekly, and Monthly Gaps for intraday trades. In my opinion, they are support and resistant zones. Combine them with trend channels and correlate between a top, middle, or bottom of a channel with a gap and it gives you I think a stronger direction indication. I combine the W5T Elliot Wave, BITS, and Roller Coaster indicators as confirmation of what's going on and to find opportunities that I didn't see or haven't drawn my channels on it.
CME_MINI:ES1!
by JDubTickTrader
IRBT Shorts "Sweep" in the Cards?IRBT - I'm expecting a move up. What I like: - Half-assed inverse head and shoulders on a daily - Start of an uptrend (albeit disorganized and choppy) - Relative strength with the indexes down over 1% - Holding closest symmetry support at $50.20 - Cluster of symmetry support from $47-48.33 with the uptrend line -786 fib retracement at $49.31 - Big ass gap above Beyond the technicals, my intuitive/dowsing approach is hinting at a short squeeze and move higher; and with 50% of the shares shorted (as I understand it), that could be F-U-N!
NASDAQ:IRBTLong
by JenRz