Morning Gap Management
Morning gaps drive traders crazy, because they hurl positions and assumptions into unknown territory. These shocking events also force an immediate re-evaluation of the charting landscape to deal with the altered reward-risk equation. But the extra work pays off, because the gaps may predict big changes in subsequent price action.
Gaps reveal shifts in crowd sentiment through single price bars. They can print anywhere within a pattern or trend, but they tend to occur in several common scenarios. Each type of gap generates unique characteristics related to persistence, response during retracements and impact on price movement.
Morning Gap Management
Gaps reveal shifts in crowd sentiment through single price bars. They can print anywhere within a pattern or trend, but they tend to occur in several common scenarios. Each type of gap generates unique characteristics related to persistence, response during retracements and impact on price movement.
Morning Gap Management
posted by Gordengekko at 10:09 AM
1 Comments:
Hi Gordengekko interesting article on gap management. As I am sure you know ITWO posted a pretty impressive gap of 65%. It had posted a nice run even prior to that gap so my question is with its Technicals maxed out would these be a classic example of an exhaustion gap??
Love your blog, keep up the great commentary and postings.
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