LESSON 10: "GAP Theory" Follow me to share basic knowledge for beginners and market trend information.
I. What is GAP?
GAP is often created?
*When the market closes the previous day and opens the next day at a different price.
- On Monday morning (after Saturday and Sunday)
- When the price fluctuates greatly
II. GAP Size
Explained by technical analysis, GAP Size can
provide:
-Signal information about price strength
-Relationships of different price actions
Help Traders understand market dynamics and the psychology of
the majority
* There are 4 Types of GAP: see more below the picture
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