How to Trade Gaps

Posted on Monday, 8th April 2013 @ 12:58 PM by Text Size A | A | A

Spread the love

A gap occurs on a chart when the closing of a Japanese candlestick is higher or lower than the opening price of the following candlestick. The Gaps may be bullish if the closing price of the candlestick is less during opening of the following candle; or bear if the closing price of the candlestick is higher at the closing of the next candle.

On Forex trading, as traded, not many gaps appear on charts. On Forex, the gaps are more frequent on weekends as the foreign exchange trading market is closed to trading for individuals from Friday evening to Sunday evening, but that it remains open in interbank. On the stock exchange, the gaps are frequent daily because market closes every day to re – open the next day. But the gaps can also appear in full day, during powerful movement of the market, with high volatility. On FX trading, it is during the new important economic that one can see the gaps in full open meeting more.

The gap provides a signal: signal to buy for a bullish gap and sell for a bearish gap signal. The Trader may consider entering Long on a bullish gap or short on a bearish gap, with order for continuation of the movement in the same sense that the gap.

Related News On HuffPo Club

  • David Gerard is a Bitcoin Fraud

    Spread the love
    Spread the loveI am calling out so-called bitcoin expert ??? David Gerard for the fraud that he is. . All he does is trash bitcoin, trash ethereum and trash any other blockchain idea on wikipedia,…

  • Last Call to be the World Leader in Outer Space. by Daniel Bruno

    Spread the love
    Spread the loveLast Call to be World Leader First posted: 03/18/2010 at Huffpo “Where is that moon, that leads to your soul?” – Aromabar     Legend has it that Kaguya descended from a race…

  • Electoral Science: The Winner of the 2016 Election Will be a Republican

    Spread the love
    Spread the loveOriginally published at Washington’s Blog in April, 2016   by Daniel Bruno   Electoral Science: The Winner of the 2016 Election Will be a Republican I was the first person in the world…

  • Report from Rio

    Spread the love
    Spread the loveReport from Rio Daniel “No Passport” Bruno, reporting from Rio de Janeiro. Daniel is from Manhattan, is an author, inventor, specialist in 9/11 studies, and the interview host at which publishes over…

Disqus Comments

Specify a Disqus shortname at Social Comments options page in admin panel

Facebook Comments

G+ Comments

Default Comments

  • Hpub asks

    • Sorry, there are no polls available at the moment.