![]() The closure rate (gap-fill) for up gaps increases if the prior day’s open-to-close price trend was also up. The gap-fill refers to the price retrace and close the level where the origin of the gap occurs. The chart below of RELIANCE stock shows the gap up acting as support for prices. The Up gap act as a support zone and the down gap act as a resistance zone. If they are bullish they gap-up price above the supply zone GAP act as Support and Resistance Smart money trying to skip important support and resistance level, i.e.Gaps also occur due to the overnight sentiment of the participant or any big news.Therefore, gaps are almost always at price levels where there is a supply and demand imbalance at the open. The gap is down because of the aggressiveness of the sellers, I mean there are more sell orders at the open than willing demand at the prior day’s close. The gap is up because of aggressiveness by buyers, I mean there are more buy orders at the open than there is available supply at the prior day’s closing price. Gaps Greatest imbalance between demand and supply.Price gaps are simply areas on the chart where no trading has taken place. A gap occurs when prices skip between two trading periods, skipping over certain prices. The difference between two consecutive candles’ closing price and opening price is called the gap. 5 simple day trading gap strategy What is Gap Trading Strategy?. ![]() At the end of this article, you will understand the following pointers in detail. Please read our previous article, where we discussed VWAP Trading Strategy in detail. In this article, I am going to discuss How to Day Trade with 5 simple GAP Trading Strategies. Data Structures and Algorithms Tutorialsīack to: Trading with Smart Money GAP Trading Strategies.
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