Understanding All About Gaps

Price ranges that are not traded on an asset's or security's chart are referred to as gaps. It frequently occurs when the markets are closed, generally in the interim between trading hours. occurs when there is no trade but it begins trading at a price that is either higher or lower than the previous day's closing price. Gaps of the four major types—separation, leakage, and extinction—are simple to perceive but challenging to pinpoint. Information regarding the trend may be found based on the kind of gap.

The purpose of this course is to introduce investors to the idea of gaps. We'll look at the gaps, explain how to interpret them correctly, and go over the fundamentals of using the gaps to make trading decisions on charts. Through example applications, the investor will learn the intricate details of correctly anticipating the price direction and trading in the gaps in market volatility using this method.