![]() ![]() In this example, the major triangle pattern is finally being invalidated by traders and a new direction is being declared.Ĭontinuation gaps are also known as runaway gaps. These gaps are typically found when a pattern is coming to a conclusion and buyers (or sellers) stepped in and started the next trend cycle. Get your analysis incorrect, and you could be placing yourself on the wrong side of the markets with very little time to exit the trade.īreakaway gaps are typically found at the very end of a price pattern and are typically seen as a shock to traders. There are 6 fairly common types of gaps that can occur in a stock chart, with each having wildly different outcomes from one another. Find the biggest gappers, search for a catalyst, add to a chart in your grid, and execute trades when momentum picks up. Every day these traders have the same focus. For example, if a company’s earnings are much higher than expected, the company’s stock may gap up the next day.įor day traders, a gap is a highly anticipated momentum signal. They are typically found around periods of news or earnings that drive the price away from where it closed the day prior. Gaps occur because of fundamental or technical factors that are influencing the stocks. ![]() That’s why I want to take some time with you today and explain what are gaps, the six main types of gaps, and how traders try to take advantage of them.Ī gap is an area where the price of a stock moves sharply up or down. ![]() What’s been even more impressive is the size of the gaps many of these stocks have had. If you’ve been following the market closely over the last few weeks it has been the strength of meme stocks. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |