What are the gaps and how are they created in CME futures?

It's simple. Bitcoin, unlike the traditional exchange, trades 24 hours a day, 7 days a week. The American stock exchange closes several hours a day and CME futures close on weekends, while Bitcoin never closes, even on Saturdays and Sundays.

The CME offers Bitcoin futures that run on exchange hours from 2021, in the previous cycle when we touch the 17,000 dollars. This means that Bitcoin movements occurring outside of exchange hours do not affect these futures. When the exchange opens on Monday morning, the Bitcoin chart may present a gap.

To add this graph in TradingView, look for "BTC1!" All together. I do not recommend looking for gaps in graphs less than 4 hours, the daily graph being the most relevant.

A gap is basically a gap in the graph between two prices where there are no transactions. According to the theory, these gaps tend to close. That is, the following candles usually move towards the prices that were not touched, closing the gap.

For example, if the gap goes from 66,460 to 64,195 dollars, it can take hours or days to close, but eventually the candles usually touch those prices.

Most gaps close quickly, but some can stay open for a long time. It is important to take these gaps into account in the analysis, as they frequently indicate price corrections before continuing with the trend.

See you in the next one! See you soon, bye.

@ballenadigital