Open GAP

See what to do with GAP shares before you decide to enter the trade.

Dig into 1️⃣ Identify (Find a jump point and understand why)

"GAP" (price gap) occurs most often during closed markets (such as overnight or lunch) when important news hits, such as financial statements.

, venture capital news, or economic crises have led many investors to set up ATO / ATC pre-sale orders on one side.

As the market opens, prices immediately "jump" to the next level without trading chasing prices in the middle. What you need to look for in the candlestick is

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Gap Up (Jump Up) Today's Low Point Stay Above Yesterday's High Point = Panic Buy Force

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Gap Down (Jump Down) Today's high point is below yesterday's low point = death escape sales force

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Delve into 2️⃣ Classify (Declassify to Read the Future Out)

It's not always that seeing a stock jump means good or bad. GAP has 4 habits you need to break out:

Common Gap (Common Gap) * Characteristics Often born in a side-running graph (Sideway) jumping up and down in a narrow frame.

Meaning, nothing significant, the price always runs back over the same place (off the gang) in a matter of days.

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Breakaway Gap (Gap Through the Frame - Very Important!)

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Characteristics occur when a price penetrates a long-standing resistance or defense.

Meaning, this is the beginning of a new trend. If you can confirm that it is real, the price will run a long way.

Runaway Gap (Wood Delivery Gap Continue)

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Characteristics occur in the middle of the way of a trend that is clearly running up or down.

The meaning says, "This trend is still very strong." The person who fell in the car tried to jump along.

Analysts often use this cap to measure the distance of how far the price will go (often running twice as far from the start).

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Exhaustion Gap (Exhausted Gap)

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The appearance occurs at the end of a trend that has run very far. The opening price jumps as hard as it goes, but during the day it is sold.

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The meaning is a warning sign that the "party is coming to an end." The last buying force is gone. Prepare for the reverse.

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Delve into 3️⃣ Confirm (use Volume as a "lie detector")

This is the intersection between novices and pros. At the time of the breakaway Gap, what it says is "real" (institutional or large-scale) or "fake" (small-scale spin-off) is the volume at the bottom of the graph.

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The real thing, Gap Up, penetrates the resistance, + Volume bars, obviously higher than in previous days, this has a very high chance of "going on."

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Beware of counterfeits (False Breakout) Gap Up breaks through the + resistance, but Volume is barren, no followers like this are dangerous. Prices often stand away and fall back down quickly.

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Delve into 4️⃣ Trade Safe (understand "off Gap" and self-defense)

The subject of "closing the gang" (Gap Fill)

Buffy often hears the teaching that "the price will come down and close the cap" (meaning the price will come back and run in the gap that jumps to the full). The truth is, not all caps will close immediately. Common Gap often closes quickly, but powerful gaps like Breakaway or Runaway can take months or years to come back and close. Going to the bar where the cover is closed can cause you to fall into a big train.

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Setting Stop Loss (loss intersection)

When the price jumps on the Gap up, the "gap" period will temporarily act as a "defense." If you buy that stock, the iron rule is that if the price goes back down to "fall off the bottom of the Gap" (completely closed), that is a danger sign that the uptrend is failing, you must discipline Cut Loss immediately to prevent the principal.